Hyundai Motor Group Executive Chair Chung Euisun, third from left, visits Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto, unseen in this photo, at the latter's office in the country, Monday (local time). Screenshot from Airlangga Hartarto's Facebook page

Hyundai Motor Group Executive Chair Chung Euisun has agreed to deepen a partnership with Indonesia in the areas of electric vehicles (EV) and hydrogen energy, according to a top-ranking government official from the Southeast Asian country, Tuesday.

Chung and some of the group's key executives, such as Hyundai Motor CEO Chang Jae-hoon and the group's adviser Sung Kim, forged the tie during a meeting with Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto.

Hyundai Motor Group is already working with the Indonesian government to build an EV ecosystem there. In 2022, the Korean carmaker opened a manufacturing facility in the Indonesian city of Bekasi. The factory is now producing the firm's flagship IONIQ 5 EV.

Hyundai aims to keep expanding its manufacturing capacity to more than 250,000 vehicles annually, with a view to turning it into the group's major automotive production hub in Southeast Asia.

Chung's latest visit to Indonesia is seen as part of the group's bid to find additional growth opportunities there. Hyundai is the only EV manufacturer with a fully localized production system in the region.

In 2021, Hyundai teamed up with LG to establish a joint venture, HLI Green Power, there to mass-produce EV battery cells. The Korean companies picked Indonesia as the location for the factory, as the country is famous for being the world's largest producer of nickel, widely considered the most crucial material for batteries.

"The Indonesian government is currently accelerating the development of EVs by preparing for an EV development roadmap and offering various relevant incentives (to its partners), so as to develop a complete EV ecosystem in Indonesia," the Indonesian minister said in a Facebook post.

The Indonesian government is also pushing for several agreements with Hyundai Motor Group and will deepen their ties, as the carmaker displayed its commitment for its investment in the country, according to the top-ranking bureaucrat.

Hyundai is actively involved in various hydrogen projects globally and is also partnering with Indonesia to implement the firm's waste-to-hydrogen production solution there.

Chung has been paying keen attention to the company's expansion in Indonesia, as was shown by his multiple visits to the country after taking office as the group's chief in October 2020. He has since visited the country four times.

The group's other affiliates are also set to build plants in the country. Hyundai Mobis, the auto parts manufacturing arm of the group, is establishing a battery system plant in Indonesia.