- VinFast plans to install 100,000 EV charging stations and open a West Java factory next year with a 50,000-unit annual capacity.
- Indonesia offers tax breaks for EV manufacturers and a Low-Cost Green Car (LCGC) program to boost local production and job creation.
- EV adoption is rising, with a 2.2% increase in car sales, and VinFast is considering wind and solar energy investments in Indonesia.
VinFast to fuel Indonesia’s EV revolution with charging stations and massive investment
Vietnamese EV maker, VinFast, is installing 100,000 charging stations across Indonesia. This announcement came after Indonesian President Prabowo Subianto met with VinFast executives today (11/03).
Investment Minister Rosan Roeslani also confirmed that VinFast’s West Java factory will begin operations next year. The plant, which broke ground last year, will have a 50,000-unit annual production capacity. The company has invested $200 million in the project.
The investments and expansions are a major part of Indonesia’s efforts to become a major EV manufacturing hub. The country has large nickel reserves, a key material for EV batteries. The government has introduced various incentives to capitalise on this ambition. Companies like BYD, Citroën, and GAC Aion are already taking advantage of these benefits.
Another incentive is the Low-Cost Green Car (LCGC) program, which exempts energy-efficient vehicles from luxury sales tax. This policy encourages local assembly and job creation, making Indonesia more appealing for EV makers.
EV adoption in Indonesia is already rising.
More affordable models have entered the market, boosting sales. In February, car sales increased by 2.2% year-on-year, the first rise since June 2023. VinFast’s charging station expansion could push sales even higher.
The company is also exploring investments in renewable energy. It may build wind farms and solar panels to support Indonesia’s green energy goals.
Prabowo’s meeting with VinFast followed a bilateral discussion with Vietnam’s Communist Party chief, To Lam. Both countries agreed to strengthen economic ties.
