Government Prepares Incentives for Hyundai Plant Expansion

By : Ahmad Fadli And Aldi Firhand. A | Monday, September 03 2018 - 23:29 IWST

Hyundai Oto Commercial Indonesia (ist)
Hyundai Oto Commercial Indonesia (ist)

INDUSTRY.co.id - Jakarta - The government has opened the option of giving tax incentives to the automotive manufacturer from South Korea, Hyundai. This incentive was given following Hyundai's plan to invest large enough amounts in Indonesia.

"It can be a tax holiday, but actually it applies to all, not just one company," said Industry Minister Airlangga Hartarto after attending a coordination meeting at the Coordinating Ministry for Economic Affairs Building, Central Jakarta, Monday (3/9/2018).

The news about the investment plan by Hyundai has actually been released since 2017. Hyundai plans to make Indonesia one of the production bases for their market in Southeast Asia. One way is to build the manufacturer itself which is rumored to have a production capacity of up to 1,000 units.

Airlangga said there were some things that were discussed in relation to Hyundai's investment. One of them is the issue of Domestic Content (TKDN) in the automotive industry, including Hyundai later. According to him, domestic automotive component companies only want the TKDN rules to be tightened by the Indonesian National Standard (SNI). "This is to reduce imports too," he said.

But until now, there has not been a final agreement on Hyundai's investment scheme in Indonesia. Airlangga said the relevant ministry was still holding talks. "This is just talking, nothing has been decided yet," he said.

News Comment

Today's Industry

Boomi Partners With Leading Japanese ERP Provider To Accelerate Digital Transformation in Japan (Graphic: Business Wire)

Jumat, 31 Maret 2023 - 17:02 WIB

Boomi Partners with Leading Japanese ERP Provider To Accelerate Digital Transformation in Japan

Boomi™, the intelligent connectivity and automation leader, today announced a new partnership with Works Applications Systems, Co., Ltd. ("WAPS") which provides system development and support,…

Tezos Logo

Jumat, 31 Maret 2023 - 15:52 WIB

Tezos Activates ‘Mumbai’ Upgrade Enabling More Than a Million Transactions Per Second

Tezos, a pioneering blockchain for Proof-of-Stake consensus and on-chain governance, has activated Mumbai, its thirteenth core protocol upgrade.

Choo Sung-hoon hops onto the TramOramic Tram to Central, getting fully immersed in Hong Kong’s unique blend of novelty and ancient sophistication. (Photo: Hong Kong Tourism Board)

Jumat, 31 Maret 2023 - 14:40 WIB

Choo Sung-hoon from Physical 100 Explored Hong Kong solo dolo

To add to the delight, the Hong Kong Tourism Board (HKTB) was glad to have Korean mixed martial artist Choo Sung-hoon – contender from NETFLIX Physical 100 – tour around Hong Kong, discovering…

PT Sariguna Primatirta Tbk (“CLEO”)

Jumat, 31 Maret 2023 - 13:23 WIB

CLEO Optimistic 2023 Turnover Increases Double Digits

PT Sariguna Primatirta Tbk (Tanobel Group), a listed company, manufacturer of Bottled Drinking Water (AMDK) with the IDX ticker code: CLEO: IJ, managed to record sales of IDR 1.36 trillion in…

PT Cerestar Indonesia Tbk (“TRGU”)

Kamis, 30 Maret 2023 - 17:05 WIB

TRGU Successfully Turns Losses into Profits in 2022

PT Cerestar Indonesia Tbk (TRGU), a producer of wheat flour which newly listed its shares on the Indonesia Stock Exchange last July, immediately achieved brilliant performance in 2022.