BYD Motor Indonesia has responded to allegations of harassment involving a local organization at its factory construction site in Subang, West Java.

Details regarding the identity of the organization allegedly involved in the incident have not been disclosed.

Luther T Panjaitan, head of marketing PR and government relations at BYD Motor Indonesia, confirmed that construction remains on schedule.

“All preparation and construction processes are proceeding well,” Panjaitan said on April 22, 2025.

The company emphasized its commitment to investing in Indonesia.

🔗 Source: CNN Indonesia

🧠 Food for thought

1️⃣ Indonesia’s investment reforms face local implementation challenges

Despite Indonesia’s successful efforts to attract foreign investment, with FDI increasing 44.2% to Rp 654.4 trillion (US$45.1 billion) in 2022, local issues continue to create friction for major projects 1.

The BYD factory incident in Subang illustrates the gap between national investment policies and local realities, where community organizations can significantly impact even high-profile projects like BYD’s planned facility, which represents an Rp 11.7 trillion investment 2.

This reflects Indonesia’s broader investment climate challenges, where the government has reduced the Negative Investment List by 75% and created one-stop permit shops, yet investors still face unpredictable local obstacles 1.

The Subang factory, planned to be a major automotive plant in ASEAN with capacity for 150,000 vehicles annually and creating nearly 10,000 jobs, demonstrates how even strategically important investments can face grassroots resistance 2.

2️⃣ Automotive manufacturers facing increased scrutiny across global operations

BYD’s challenges in Indonesia come amid similar issues in Brazil, where authorities halted construction of its first non-Asian factory after discovering 160+ workers in “slavery-like conditions” with withheld passports and salaries 3.

In Brazil, BYD distanced itself by terminating the responsible contractor, while in Indonesia, the company’s response emphasizes continuing construction while addressing conflicts—a pattern of managing local issues while maintaining global expansion 3 4.

These challenges highlight the increased scrutiny multinational automotive manufacturers face when establishing manufacturing operations in emerging markets, particularly as they rapidly expand beyond their home countries.