Chinese automotive manufacturer Build Your Dream (BYD) estimates that its factory in Subang, West Java, will become operational in the first quarter of 2026.

BYD's General Manager of the Asia-Pacific Auto Sales Division, Liu Xueliang, explained that the company had received a standard certificate from the Indonesian government by the end of 2025. BYD has scheduled an accelerated final preparation process.

Liu stated in Zhengzhou, China, on 15th January 2026, "The company remains optimistic about commencing operations in the first quarter of 2026."

He further added, "The company is prepared to bring the technology employed in Zhengzhou to Indonesia."

On 15th January 2026, Indonesian media were granted access to BYD's production facility in Zhengzhou, Henan, China. The plant spans 10.67 square kilometres and encompasses four main processes: pressing, welding, painting, and assembly. BYD is establishing a complete industrial chain in Zhengzhou, including new energy vehicle motors, electronic controls, drive systems, and the blade battery power battery park.

The Zhengzhou factory operates with a 98% automation rate; in the welding plant, for instance, 98% of tasks are performed by industrial robots. The BYD Zhengzhou Super Factory serves as one of the company's primary global production centres.

In Indonesia, BYD is among the recipients of completely built-up (CBU) import incentives from the government and plans to commence local production in early 2026.

Airlangga, Indonesia's Coordinating Minister for Economic Affairs, stated that the government has distributed IDR 7 trillion (US$ 413 million) in automotive sector incentives over the past two years.

"Several factories have committed to construction. BYD is already near completion, with an investment of IDR 11.2 trillion," Airlangga stated during the opening of the Kadin National Leadership Meeting on 4th December 2025.

It should be noted that the government previously confirmed that CBU import incentives for pure electric vehicles would be discontinued at the end of 2025.

This policy is outlined in Minister of Investment Regulation No. 6/2023 in conjunction with No. 1/2024, which stipulates that battery electric vehicle (BEV) import facilities and incentives are valid only until 31st December 2025.

From 1st January 2026 to 31st December 2027, manufacturers will be required to fulfil local production commitments under a 1:1 scheme, in accordance with the Domestic Component Level (TKDN) roadmap.

These commitments include ensuring technical specifications, such as electric motor power and battery capacity, are met.

Failure to comply may result in the government cancelling bank guarantees as a penalty.