Ford Motor Company is reportedly planning to invest in an electric vehicle (EV) manufacturing plant in Indonesia in 2025. Although the US automaker has not officially confirmed these reports, Indonesian government sources have indicated that Ford is making preparations to establish a production facility in the country.
Ford re-entered the Indonesian market in 2022 after a hiatus of six years, partnering with the Bangkok-based RMA Group. The company currently offers the Thai-made Ranger pickup truck and Everest SUV derivative in Indonesia, with a total of 664 deliveries recorded this year.
According to Indonesia’s Deputy Industry Minister, Faisol Riza, Ford has committed to setting up a factory and making investments in Indonesia by the following year. This move aligns with Ford’s broader strategy to expand its presence in the Southeast Asian market and capitalize on the region’s growing demand for electric vehicles.
In addition to its manufacturing plans, Ford has also invested in a nickel processing project in Indonesia in collaboration with global mining giant Vale and China’s Zhejiang Huayou Cobalt Company. The project, managed by PT Kolaka Nickel Indonesia on the island of Sulawesi, aims to leverage Indonesia’s status as the world’s largest producer of nickel, a crucial component in EV batteries.
The Indonesian government has been actively engaging with various global automakers since the new administration under President Prabowo Subianto took office in October. Discussions have included talks with Volkswagen Group and Ford, among others, signaling a renewed interest in attracting foreign investment in the automotive sector.
Deputy Minister Faisol Riza emphasized the government’s commitment to increasing local content requirements for BEVs, aiming to reach 40% by the end of 2026 and eventually ramping up to 80% by 2030. This initiative is part of Indonesia’s broader strategy to develop a robust EV ecosystem and promote domestic manufacturing capabilities.
As Ford prepares to expand its presence in Indonesia and contribute to the country’s growing EV industry, the automotive landscape in Southeast Asia is poised for significant transformation. With a focus on sustainability and innovation, Ford’s investments in Indonesia represent a strategic move towards shaping the future of mobility in the region.
