Antara News·Indonesia·Friday, November 13, 2026 at 02:53 PM UTC

Govt assures BYD's local hiring share is fair

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A Muzdaffar, Fauzul Azhim Bin Fakhrurazi

Jakarta (ANTARA) - Minister of Industry Muhammad Sarmuji has described the employment of local labor workers at the BYD automotive factory in Subang, West Java, as fairly balanced, with workers from West Java accounting for 80 percent of the workforce and Subang residents making up 30 percent.

According to Sarmuji, the proportion of local workers should continue to increase alongside efforts to improve the competencies and skills of local residents to meet industrial requirements.

“We consider this fairly balanced. Indeed, to increase the number of local residents, particularly those from Subang, the required training must also be more intensive, and their skills must be developed to match BYD’s needs,” the minister said after inspecting BYD’s manufacturing facility in Subang, West Java, on Friday.

According to Sarmuji, the government had previously taken steps to resolve problems that had arisen within the company.

The efforts were coordinated under the Director General of Metal, Machinery, Transportation Equipment, and Electronics Industries.

Sarmuji expressed hope that the problem had been permanently resolved. He also reviewed employment data to determine the proportion of local residents recruited by the company.

“At present, it appears that the issue has been settled, and hopefully it will remain so. But when I checked just now, I examined the existing data that Subang residents account for 30 percent, while workers from across West Java make up 80 percent,” he said.

BYD currently employs around 6,000 employees. That number is projected to keep growing as production capacity increases, with labor needs that could reach up to 20,000 people.

Earlier, he had urged BYD to increase its local content level (TKDN), expand its investment realization, and speed up local labor absorption in developing the electric vehicle industry in Indonesia.

“The first is the investment commitment, the second is the commitment to use domestically produced goods, in this case by partnering with companies, especially medium-sized ones, to supply components for BYD’s factory. The third is the commitment to increase employment, especially local labor,” Sarmuji said.

The minister said increasing TKDN will add value to the national economy, especially through the involvement of local companies and suppliers in the electric vehicle industry’s supply chain.

According to him, BYD is ready to raise its TKDN composition to 60 percent in 2027.

Furthermore, the government is encouraging an increase in BYD’s investment realization, including plans to build a battery production facility.

The effort is in line with the government’s efforts to build a battery-based electric vehicle industry and ecosystem using domestic resources.

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