TEMPO.CO, Jakarta - Investment Coordinating Board (BKPM) chief Bahlil Lahadalia said the investment of South Korean-based Hyundai Motor Company in Indonesia (RI) amounting to US$1.55 billion or Rp21.8 trillion would generate high added value for the country’s economy.

“[The added value includes] the absorption of 3,500 workers, development of a research center, and study on electric cars,” said Bahlil in Busan, South Korea, Tuesday, November 26.

Bahlil demanded Hyundai to optimize the use of local raw materials and cooperate with local entrepreneurs for its production.

“For example, using batteries from Morowali and tires and rubber from the domestic so that electric cars produced in Indonesia will be equipped with local products,” he added.

The investment of Hyundai was carried out through the signing of a memorandum of understanding (MoU) by Bahlil and Hyundai CEO Lee Won-hee at the company factory in Ulsan, South Korea, on Tuesday, November 26.

The signing was witnessed by President Joko “Jokowi” Widodo and Hyundai Motor Group Executive Vice Chairman Chung Eui-sun.

Bahlil said the realization of the investment will be executed in two stages: the first in 2019-2021 and the second one in 2022-2030.

"In the first phase, Hyundai will focus on investing in the car manufacturing plant and will export at least 50 percent of its total production, while the second phase will be on the development of the electric car manufacturing plant, transmission factory, research and development (R&D), and training center. The production will be exported as much as 70 percent," Bahlil said.

ANTARA