VinFast Reaffirms Commitment to Establish Electric Vehicle Plant in Indonesia
Key Takeaways
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JAKARTA, investortrust.id – Vietnam’s electric vehicle manufacturer VinFast is set to expand its global footprint by establishing a production plant in Indonesia, Minister of Investment Rosan Roeslani has confirmed. The company has been in discussions with the Indonesian Investment Ministry to advance its plans, and the facility is expected to produce up to 50,000 electric vehicles per year.
"Yes, it's true. VinFast has met with us regarding their plan to build a factory in Indonesia," Rosan said at the Presidential Palace complex in Jakarta on Monday, March 10, 2025.
Rosan emphasized that VinFast is highly committed to this investment, selecting Indonesia as one of only two countries outside Vietnam where it plans to establish manufacturing operations.
"They are serious about investing. Indonesia is one of the two countries where they are looking to expand beyond Vietnam," he stated.
VinFast’s Factory in Subang to Begin Production in 2025
CEO of PT VinFast Indonesia Temmy Wiradjaja previously revealed that the company’s upcoming plant in Subang, West Java, will have an annual production capacity of 50,000 electric vehicles.
"Production capacity is set at 50,000 units per year," Temmy said during the Gaikindo Indonesia International Auto Show (GIIAS) 2024 in ICE BSD, Tangerang, Banten, last July.
He confirmed that the Subang plant will exclusively manufacture electric vehicles (EVs), with no internal combustion engine models planned. The facility is expected to be completed in 2025, with production kicking off the same year.
"We will produce the VF5, VF6, VF7, and VF3 models at the new factory," Temmy added.
Regarding pricing, VinFast’s EV models for the Indonesian market—VF5, VF6, VF7, and VF3—are expected to be priced between Rp 200 million and Rp 250 million ($12,800–$16,000). The initial investment in the Subang plant is approximately $200 million (Rp 3.23 trillion).
Strategic Expansion and Export-Oriented Production
Rosan noted that while specific details regarding the investment value and factory location were still being finalized, the production facility would primarily cater to export markets. The Investment Ministry is assisting VinFast in selecting a suitable location and ensuring the smooth execution of its investment plans.
"We are working alongside them to provide location options so they can realize their investment," he explained.
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that VinFast is not only investing in vehicle production but also developing a large-scale EV charging ecosystem in Indonesia, with a target of 100,000 units.
"VinFast is not just investing in electric vehicles but also planning to build a large charging ecosystem," Airlangga remarked.
Strengthening Indonesia-Vietnam Economic Cooperation
VinFast’s investment aligns with broader economic cooperation between Indonesia and Vietnam. Indonesian President Prabowo Subianto recently met with General Secretary of the Communist Party of Vietnam, To Lam, to discuss bilateral initiatives.
In addition to VinFast’s expansion, Indonesia is investing in a new animal vaccine production facility in Vietnam, further strengthening business ties between the two nations.
Airlangga highlighted that 130 Indonesian-operated projects are currently active in Vietnam, with efforts underway to increase Vietnamese investment in Indonesia.
"Both nations share the same aspiration of becoming high-income countries within the next century," he stated.
Indonesia Offers Nickel Supply for EV Batteries
As part of its efforts to enhance Indonesia’s role in the global EV supply chain, the government has offered VinFast access to its vast nickel reserves, a critical component in battery production.
"Indonesia is one of the world’s largest nickel producers and is ready to collaborate with VinFast for EV battery raw materials," Airlangga said during the Indonesia-Vietnam High-Level Business Dialogue in Jakarta.
He emphasized that integrating Indonesia’s nickel production with Vietnam’s EV manufacturing capabilities would boost both countries’ competitiveness in the global market.
"VinFast’s investment in a new EV factory in Subang and its commitment to building 100,000 charging stations signify deeper cooperation in sustainable transportation," he added.