VinFast partners with more banks to boost EV adoption in Indonesia

Vietnamese electric vehicle maker VinFast has signed memoranda of understanding with six major Indonesian banks and finance companies to boost EV adoption in Indonesia.

The agreements involve PT Adira Dinamika Multi Finance, PT Bank Woori Saudara Indonesia, PT CIMB Niaga Auto Finance, PT Mandiri Tunas Finance, PT Maybank Indonesia Finance, and PT Sunindo Kookmin Best Finance.

VinFast plans to collaborate with these partners on joint marketing and streamlined credit approval processes.

The parties will also work on creating financing options such as loans with lower down payments and competitive rates for VinFast buyers.

Plans include developing financial products for both battery-included and battery-subscription models.

VinFast is preparing to launch operations at its Subang assembly plant in West Java, near Jakarta, as part of its growth strategy in Indonesia.

🔗 Source: VinFast

🧠 Food for thought

Implications, context, and why it matters.

Bank Indonesia and OJK policy will decide if VinFast lower down payments cut ownership costs

In 2020, Bank Indonesia (BI) scrapped down payment rules for environmentally friendly vehicle loans at lenders with low non-performing loan ratios and Indonesia’s Financial Services Authority (OJK) eased EV lending assessments plus risk metrics, enabling VinFast’s promised “lower down payments” 1. Auto lenders ask 15 to 30 percent upfront, the government cut that to 0 to 20 percent for conventional cars, so VinFast must clarify if its EV plans beat those rates 2.
Affordability depends on interest and loan tenor. Typical auto loans run at 4 to 6 percent with one to five year terms 2. OJK set “maximum economic benefit” caps for fintech peer to peer (P2P) loans, banks and multi finance (non-bank) auto loans are outside those limits 3. Partner banks will price based on their risk views, not P2P caps.

Third party EV charging operators can fill gaps before VinFast dealer rollout

VinFast’s Subang plant launch and dealer growth lift demand for public chargers. In 2020, OJK let charging station loans bypass some regulator limits 1. That eases funding for private players in high traffic sites before VinFast builds its network.
Payment and software firms can target the Carbon Exchange, Indonesia’s carbon credit marketplace launched in September 2023, and it has processed 614,454 tonnes of CO2 equivalent worth Indonesian rupiah 37.09 billion 4. Tie EV charging to carbon credit programs where fleets or consumers earn credits for EV use. That creates new revenue for networks and pulls in sustainability minded corporate buyers before mass EV adoption.