After losing ground in China and Europe, Ford looks to grow in a market full of untapped potential for electric vehicles – Indonesia. The automaker is investing in the EV industry in Indonesia – the world's largest nickel producer – setting up shop next to its $4.5 billion joint venture nickel project in the country.
Although Ford has yet to officially confirm the reports, the Indonesian government is said to have already held talks with a number of car manufacturers around the world – “including Volkswagen Group and Ford,” according to reports.
Ford is currently slashing jobs in Europe and losing market share in China, but sees Indonesia as a potential bright spot. The automaker returned to the Indonesian market in 2022 after a six-year absence with its partnership with Bangkok-based RMA Group. Ford now sells the Thai-made Ranger truck and Everest SUV, with a combined 664 deliveries so far this year.
But Indonesia is focusing on EVs for two reasons, to exploit the country's rich nickel resources and to drive job creation thanks to its large and small workforce. It has always favored automakers to invest in the country, using its market size, low vehicle penetration, and strategic position in South Asian markets as key selling points. As for nickel, Indonesia produces 20.6% of the world's total.
At the event in Jakarta, the Deputy Minister of Industry, Faisol Riza told the media that “Ford has promised that next year it will have completed its factory and investment in Indonesia,” according to the media including The Jakarta Post and Global Data-owned Just the default.
Last year, Ford partnered with global mining giant Vale and China's Zhejiang Huayou Cobalt Company to invest in a $4.5 billion nickel processing project on the Indonesian island of Sulawesi, with operations expected to begin in 2026. The mine is expected to produce up to 120,000 tons of average nickel product per year for EV battery cathodes.
Since President Prabowo Subianto took office in October, the Indonesian government has been negotiating with several automakers, including Volkswagen and Ford. “It seems that some of the car manufacturers in the world that once existed and disappeared will come back,” said Faisol Riza at the event. “We intend for all manufacturers to establish factories in Indonesia because of their high social and economic impact, especially in creating job opportunities.”
Indonesia plans to increase local content requirements for BEVs to 40% by the end of 2026, rising in stages to 80% by the end of 2030.
Photo credit: Ford
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