Taiwan-based Hon Hai Precision Industry Company Limited (Hon Hai) has announced plans to invest in the development of an electric vehicle (EV) component manufacturing facility in Indonesia. Under a memorandum of understanding (MoU) signed with the Government of Indonesia, the company will oversee the construction of an USD8 billion manufacturing base in Batang, Central Java.
Hon Hai will undertake the production of EV components like batteries and electric motors as well as transfer its telecommunications equipment manufacturing operations from China.
This move is in line with the Government of Indonesia’s attempts to establish the country as Asia’s regional EV components manufacturing hub. In 2021, the government launched PT Industri Baterai Indonesia (IBI), to boost the development of EV batteries and key raw material production in the country.