President of Indonesia, Joko "Jokowi" Widodo, met with Hyundai's delegations at State Palace. (Image: Detik Finance)

Jokowi to go to S. Korea, discussing investment with Hyundai

Alfonsus Adi Putra
Politics & Economic
Economic
Jul 30, 2019
1854
JAKARTA - South Korean (S. Korea) automotive manufacturer, Hyundai Motors Company (HMC), is more than eager to invest its money in Indonesia. The head of the Association of Indonesia Automotive Industry (GAIKINDO), Yohannes Nangoi, stated further that the S. Korean manufacturer has risen to be the most enthusiastic when it comes to investment in Indonesia.

The rumor has it that the investment deal will be made shortly.

As the association of the automotive industry in Indonesia, GAIKINDO held the biggest automotive exhibition GAIKINDO Indonesia International Auto Show (GIIAS) from 18 – 28 July in BSD City, Serpong district of South Tangerang, within Greater Jakarta in Indonesia.

Met on the sidelines of the exhibition for an interview last week, Nangoi revealed that the President of Indonesia, Joko “Jokowi” Widodo, himself would be going to S. Korea in either October or November to discuss the investment plan with HMC.

However, being asked whether a deal will take place, Nangoi could not say “yes”. He only pointed out that the atmosphere between HMC and the Indonesian automotive market is already positive, so
“most likely”, a deal will be made soon.

Nangoi said that the visit has been recognized by the Indonesian Minister of Industry, Airlangga Hartanto, and Coordinating Minister of Maritime Affairs, Luhut Binsar Panjaitan. Luhut once ever stated that the investment would worth US$1 billion.

On Thursday (25/7) last week, Jokowi had already met delegations from HMC: Executive Vice Chairman of HMC, Euisun Chung, President of HMC, Young-Woon Kong, Executive Vice President of HMC, Hong-Jae Park, and Senior Vice President, Young-Tack Lee, at the State Palace.

During their meeting, HMC & Jokowi exchanged constructive ideas regarding the development of the automotive industry in Indonesia, ranging from electric vehicles to even flying vehicles. It is possible that HMC also wants to produce eco-friendly vehicles in Indonesia.

HMC revealed a plan where it would build its R&D facilities in Bekasi, Karawang, Purwakarta, and Subang, West Java. Once the facilities have been established, then HMC will start producing MPV, SUV, hatchback, and sedan in Indonesia.

- KIA IN INDONESIA –

Talking about Hyundai, Kia is also one of S. Korean major automotive manufacturers in Indonesia. However, regarding the investment in Indonesia, Kia was most likely excluded. Nangoi said that HMC would only produce Hyundai, not Kia.

Furthermore, Kia has already been acquired by a new joint venture company, Kreta Indo Artha (Indomobil), as Kia’s new brand agent. Therefore, Kia is no longer under Kia Mobil Indonesia (KMI). A small step for Kia, it will announce its new board of directors in the upcoming September.

Nevertheless, Nangoi closed his statement by predicting that Kia would also invest in Indonesia. For further details, it has to wait. Nangoi could not give any detail either because Indomobil has not announced any information yet.

Source: https://www.cnnindonesia.com/teknologi/20190730091307-384-416648/jokowi-disebut-akan-ke-korsel-bahas-investasi-hyundai

Politics , Economy , Business , Automotive , Industry , Indonesia , S.Korea , Hyundai , GAIKINDO , GIIAS2019