[May 13, 2025] KG Mobility announced the signing of a Head of Agreement (HOA) with PT Pindad (hereinafter “Pindad”), Indonesia’s state-owned defense company, to expand cooperation on KD supply of the Rexton SUV and joint vehicle development projects.
The signing ceremony took place on May 8 (local time) at Pindad’s headquarters in Bandung, Indonesia, and was attended by Chairman Kwak Jea-sun, KGM CEO Hwang Ki-young, and KGMC CEO Kim Jong-hyun, along with Pindad CEO Mr. Sigit P. Santosa, and Two Sun Engineering CEO Kim Jea-moo, among other key representatives.
Through this HOA, KGM and Pindad will collaborate on the Indonesian government’s “National Car Project” and the local production of electric buses, based on KGM’s electric vehicle lineup and KGMC’s electric bus platform. KGM will provide engineering and technical support for product feasibility reviews and localized vehicle development.
In particular, the two parties have agreed to actively cooperate to gradually expand the joint development projects to a scale of 200,000 units, including additional new model supply and support for Pindad’s leadership in both the national car initiative and electric bus production in Indonesia.
Pindad, under the Ministry of Defense, is Indonesia’s leading state-owned defense company, supplying over 70% of the country’s military vehicles, armored vehicles, and military equipment.
KGM previously exported 1,060 KD units of the Rexton to Indonesia in 2024, and plans to increase this to 3,000 units in 2025.
In addition to Indonesia, KGM has been expanding its presence in emerging markets. In March 2025, the company signed an MOU with FAME (Fabrica de Armas y Municiones del Ejército), a state-owned enterprise under the Peruvian Army, for the supply of official government vehicles and joint technology cooperation.
Chairman Kwak Jea-sun stated,
“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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