Government Prepares Incentives for Hyundai Plant Expansion

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.