KGM Partners with Pindad on Indonesia's National Car and EV Projects

Pyeongtaek-si, South Korea- KG Mobility Corporation (KGM)., a South Korean automobile manufacturer, has signed a Head of Agreement (HOA) with PT Pindad, Indonesia’s state-owned defense company, to deepen cooperation on KD (knock-down) supply of the Rexton SUV and to pursue joint vehicle development projects.

The agreement was signed at Pindad’s headquarters in Bandung, Indonesia. The ceremony was attended by KGM Chairman Kwak Jea-sun, KGM CEO Hwang Ki-young, KGMC CEO Kim Jong-hyun, Pindad CEO Sigit P. Santosa, and Two Sun Engineering CEO Kim Jea-moo, along with other key officials.

Under the terms of the HOA, KGM and Pindad will collaborate on Indonesia’s “National Car Project” and the local production of electric buses. These initiatives will leverage KGM’s electric vehicle lineup and KGMC’s electric bus platform. KGM will provide engineering and technical support for feasibility assessments and localized vehicle development.

The agreement also outlines plans to scale up joint development efforts to reach a production volume of 200,000 units. This expansion includes the introduction of new models and aims to support Pindad’s leadership in the national car program and the electric bus segment in Indonesia.

Pindad, operating under Indonesia’s Ministry of Defense, supplies more than 70% of the nation’s military and armored vehicles, as well as other defense equipment.

In 2024, KGM exported 1,060 KD units of the Rexton SUV to Indonesia and aims to increase that number to 3,000 units in 2025.

Beyond Indonesia, KGM is actively expanding its footprint in emerging markets. In March 2025, the company signed an MOU with FAME (Fábrica de Armas y Municiones del Ejército), a state-owned enterprise under the Peruvian Army, to supply government vehicles and pursue joint technology initiatives.

Mr. Kwak Jea-sun, Chairman, said, “The Musso Sports and Rexton have already proven their quality and performance in global markets, having been adopted as official government vehicles in the UK, Bulgaria, and Peru. Indonesia, being the largest automotive market in Southeast Asia with immense growth potential, is a strategic and promising opportunity for us. KGM will dedicate its efforts to expanding sales through differentiated product competitiveness and market-specific strategies.”

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