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China’s BYD Automobile, the world’s largest electric vehicle manufacturer, aims to build an electric bus assembly plant in Indonesia and eventually a battery manufacturing plant.

A source close to negotiations between the Chinese company and Indonesia said the facility would be built in the Batang Industrial Park in Central Java.

“Tax incentives are one of the issues being discussed,” said the source, without elaborating.

BYD did not respond to an email requesting comment.

Singapore, Southeast Asia’s largest economy, is opening its doors to the introduction of electric vehicles and looking to attract global manufacturers to set up facilities and help develop the ecosystem.

The Indonesian government has taken steps to attract investment, including a 20-year tax holiday that has attracted strong interest from the private sector.

South Korea’s LG Chem is investing billions in the Batang Industrial Park’s EV supply chain to tap the country’s nickel reserves, which account for a quarter of the world’s reserves.

Separately, China’s CATL, the world’s largest EV battery manufacturer, will begin construction of a facility in Buri, North Maluku, later this year. The facility houses a smelter that produces precursors and cathodes, the raw materials used to manufacture EV battery cells. We are proceeding with the acquisition of interests in nickel mines.

According to Gilarsi W. Setijono, CEO of VKTR Teknologi Mobilitas, more than 50 BYD buses have so far entered Indonesia as part of the fleet of Trans Jakarta, a bus rapid transit system operated by the capital Jakarta. Imported. Partner of BYD.

BYD expected to face competition from incumbent industry players In Indonesia, mixed metal oxides of nickel-manganese and cobalt are mainly used for battery manufacturing. BYD uses lithium iron phosphate, a cheaper technology that offers a shorter travel range than NMC batteries.

VKTR’s Gilarsi told Straits Times that the industry is waiting for import tariff incentives on EV components needed to assemble and manufacture electric buses before setting up assembly lines.

“When everything is ready, BYD buses will be manufactured here, but the batteries will have to be temporarily imported from China. he told The Straits Times. Chinese EV maker BYD to build bus assembly and battery plant in Indonesia

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