KGM partners with Indonesia’s Pindad for EV, defense cooperation

KG Mobility said Tuesday it is set to supply electric buses and military vehicles to Indonesia through PT Pindad, a state-owned defense company under the country’s Ministry of Defense.

The signing ceremony for the head of agreement — a non-binding preliminary document outlining the key terms of a proposed deal — took place on Thursday at Pindad’s headquarters in Bandung, Indonesia. Key figures attended the event, including KGM Chairman Kwak Jae-sun, KGM CEO Hwang Ki-young, KGMC CEO Kim Jong-hyun and Pindad CEO Sigit P. Santosa.

Under the agreement, KGM plans to jointly develop 200,000 electric buses with Pindad as part of Indonesia’s national car project — to produce electric vehicles within the country, with a target of deploying 2 million electric vehicles and 12 million electric two-wheelers by 2030. The automaker will support the product review, as well as the technology and engineering of the vehicle.

Last year, KGM exported 1,060 units of Rexton pickup knockdowns — partially assembled vehicles — for military use to Indonesia and plans to export 3,000 units this year.

“The Musso Sports and Rexton have garnered global recognition in the global market, having been supplied as official vehicles to countries such as the UK, Bulgaria and Peru,” stated KGM Chairman Kwak Jae-sun. “With Indonesia emerging as the largest automotive market in Southeast Asia and possessing significant growth potential, it presents highly attractive business opportunities. KGM is committed to expanding its sales volume by leveraging our unique products and strategic marketing approach.”

In March, KGM also signed a memorandum of understanding with Fabrica De Armas Y Municiones Del Ejercito, a state-owned enterprise under the Peruvian Army, to increase the supply of official vehicles and technological cooperation, accelerating its penetration into emerging markets and expanding business operations.