South Korean automaker KG Mobility (KGM) Company recently announced a significant partnership with Indonesian state-owned defense company PT Pindad. The collaboration aims to produce vehicles for the local market, with a focus on the local assembly of KGM’s Rexton SUV and the development of battery-powered buses.
The Head of Agreement (HOA) was signed at Pindad’s headquarters in Bandung, West Java, in the presence of KGM’s chairman Kwak Jea-sun, CEO Hwang Ki-young, and Pindad CEO Sigit P Santosa. The agreement outlines plans for joint projects related to Indonesia’s ‘National Car Project’ and the production of electric buses tailored to the local market.
As part of the collaboration, KGM will provide engineering and technical support for product feasibility reviews and localized vehicle development. The two companies aim to expand their joint development projects to a scale of 200,000 units, including the supply of new models and support for Pindad’s leadership in the national car initiative and electric bus production in Indonesia.
Pindad, known for supplying over 70% of Indonesia’s military vehicles and equipment, will benefit from KGM’s expertise in vehicle production and technology. KGM has a track record of success, having exported 1,060 Rexton SUVs to Indonesia as knocked-down units last year, with plans to increase this to 3,000 units in 2025.
In addition to the partnership with Pindad, KGM also signed a preliminary agreement with Peru’s Fabrica de Armas y Municiones del Ejército (FAME) in March 2025 for the supply of official government vehicles and joint technology cooperation.
Chairman Kwak Jea-sun expressed optimism about the collaboration, highlighting the quality and performance of KGM’s vehicles in global markets. He emphasized Indonesia’s significant automotive market potential and the strategic importance of the partnership. KGM is committed to leveraging its product competitiveness and market-specific strategies to expand sales in Indonesia.
