BYD & VinFast Factory: Agricultural Land Replacement Needed
VinFast and BYD Factories in west Java: Balancing Investment with Food Security
Table of Contents
Indonesia is actively courting foreign investment in its electric vehicle (EV) sector, but a recent growth in West java highlights the delicate balance between economic growth and preserving vital agricultural land. Factories being built by Vietnamese automaker VinFast and Chinese EV giant BYD in Subang Regency are located on land designated as Sustainable food Agricultural Land (LP2B), sparking a call for land replacement from the Indonesian government.
Addressing the LP2B Land Use
The construction of these significant manufacturing facilities – representing a combined investment of approximately rp. 33 trillion – has inadvertently encroached upon paddy fields crucial for national food security. Minister of Agriculture Andi Amran Sulaiman emphasized the need for a solution that supports both investment and agricultural preservation.
“We want to encourage investment and open jobs, but we must also pay attention to our agricultural land,” stated Minister Amran at the Ministry of Agriculture on August 13, 2025. He assured a swift resolution, signaling the government’s commitment to finding a path forward that benefits all stakeholders.
Land Replacement Plan: 3x the Area
West Java Governor Dedi Mulyadi confirmed that spatial data maps still classify the land under construction as LP2B,despite its current state. He has requested land replacement for the area utilized by the factories, and a strategic proposal has been made to provide three times the original area in new agricultural land.
“we want to harmonize investment with agricultural replacement,” Governor Dedi explained. “The recommendation is to replace LP2B land - such as, 200 hectares – with 600 hectares of new rice fields.”
Indramayu Identified as Potential Replacement Site
The proposed location for this land replacement is Indramayu Regency, chosen for its proximity to Subang and its suitability for rice cultivation. Governor Dedi expressed optimism that a fast resolution will not only safeguard food production but also stimulate agricultural growth, downstream industries, and overall economic development in West Java.”This is part of the collaboration between the central government and the region to encourage agricultural growth,downstreaming,economic growth,and the availability of employment,” he added. The initiative aims to ensure that Indonesia can capitalize on the burgeoning EV market without compromising its ability to feed its population. This proactive approach demonstrates a commitment to sustainable development and responsible investment practices.