China's EV maker BYD to build bus assembly plant in Indonesia

China's BYD Automobile, the world's largest maker of electric vehicles (EVS), has set its sights on building an electric bus assembly plant and, eventually, a battery manufacturing factory in Indonesia.

- Wahyudi Soeriaatmadja

A source close to the negotiations between the Chinese company and Indonesia said that the facilities would be built in Batang Industrial Park, in Central Java province.

"Tax incentives are among the matters being discussed," the source said, declining to elaborate.

E-mail seeking comment from BYD received no response.

South-east Asia's largest economy is opening its doors to the adoption of EVs and trying to attract global manufacturers to set up facilities and help develop the ecosystem.

The Indonesian government has put in measures to attract investment, including 20-year tax holidays, which have garnered strong interest from the private sector.

South Korea's LG Chem is investing billions of dollars in EV supply chains in the Batang Industrial Park, looking to tap the country's nickel reserves, which account for a quarter of global reserves.