Hyundai Motor Group Executive Vice Chairman Chung Eui-sun (left) shakes hands with Indonesia President Joko Widodo, right, 

Thursday at the Merdeka Palace in Jakarta, Indonesia. [Photo by Hyundai Motor Co.]

Hyundai Motor Group Executive Vice Chairman Chung Eui-sun met with Indonesian President Joko Widodo on Thursday to discuss ways to make entry into the country amid rumors that Korea’s largest carmaker is looking to build its first Southeast Asian finished car production base in Indonesia to compensate for its struggles in China.

South Korea’s auto group announced that Chung held talks with President Widodo on Thursday at the presidential palace in Jakarta. Widodo, who first praised Hyundai Motor’s successful operation in the global market, reportedly asked Chung to make aggressive investments in Indonesia and pledged full support, according to sources.

“Indonesia is not an easy market to enter and it is challenging to find ways to make entry into the market,” Chung was quoted as saying. But he said he really appreciated the interests of the president and the Indonesian government, according to sources.

Chung was reported to say that he will find innovative ways to meet local demand and incorporate technologies if Hyundai makes inroads into the Southeast Asian country. He also had dinner with local university students to get to know the lifestyle and interests of young people living in the nation. After that, he was briefed on Hyundai Motor and Kia Motors’ operation in the Asia-Pacific region.

The Indonesian government and president have been paying high interest in whether Hyundai Motor would set up a finished car manufacturing line in the country. If the Korean auto giant builds a factory in the country, it would become the automaker’s first finished car producing base in Southeast Asia, where it has only assembly lines in Indonesia and Vietnam.

Following the visit by the Indonesian Minister of Industry to Hyundai Motor headquarters in Seoul last month, the Indonesian government announced that Hyundai would build a factory capable of producing 70,000 units to 250,000 units of sport utility vehicles, hatchbacks and sedans per annum in Indonesia by 2021. But Hyundai said it is still reviewing ways to expand its operation in the Southeast Asian market but nothing is decided yet.

Industry watchers speculate the Korean auto giant may scale down its production in China and move its focus onto Southeast Asia as it has been losing market share in China due to the ascension of its Chinese peers. Hyundai Motor said it has been exploring various investment plans in the Southeast Asian nations.

By Lee Jong-hyuk and Choi Mira

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