Ford has committed to investing in an electric vehicle (EV) production facility in Indonesia, with plans to have the plant operational by 2025. This follows the company’s previous move into Indonesia’s electric vehicle supply chain, where it, along with partners, began building a nickel processing plant in 2022.
Faisol Riza, Indonesia’s Deputy Minister of Industry, confirmed the investment at an event in Jakarta, stating, “Ford has promised to realise its factory and investment in Indonesia by next year.” While Ford has not yet made a public confirmation regarding the new factory, the announcement aligns with Indonesia’s broader strategy to position itself as a hub for electric vehicle manufacturing in the Asia-Pacific region.
Ford’s return to the Indonesian market in 2022, after a six-year absence, was through a partnership with the Bangkok-based RMA Group. Industry experts expect that the proposed EV plant will primarily focus on exports to the Asia-Pacific market and beyond. Despite Ford’s efforts to expand in Indonesia, the company is undergoing significant job cuts in Europe, indicating a shift in its global strategy.
The company’s investment in Indonesia is also closely tied to its supply of materials for electric vehicle batteries. In spring 2023, Ford announced a partnership with mining company PT Vale Indonesia and Chinese firm Huayou Cobalt to establish a nickel processing facility in Sulawesi, aimed at producing materials for battery cathodes. The nickel processing plant, which is part of a broader project expected to start operations by 2026, is projected to produce up to 120,000 tonnes of nickel per year, with a total investment of approximately 67.5 trillion Indonesian rupiah (around 4.0 billion euros). This strategic project, which is set to create 12,000 jobs, highlights Indonesia’s position as a key player in the global nickel supply chain.
Source: thestar.com
