Jakarta, INTI - The government continues to strengthen its position as a key player in the electric vehicle (EV) ecosystem through policy alignment, upstream-to-downstream industrial readiness, and active participation from both national and global automotive industry stakeholders. Authorities are encouraging involvement across the entire value chain to build a robust and self-sufficient EV supply network in Indonesia.
Minister of Industry Agus Gumiwang Kartasasmita reaffirmed the government’s support for various automotive technology developments, provided they contribute to emissions reduction and environmental sustainability. This open-technology approach is expected to foster innovation while accelerating the transition toward low-emission vehicles.
Meanwhile, the Director General of Metal, Machinery, Transportation Equipment, and Electronics Industries (ILMATE) at the Ministry of Industry, Setia Diarta, explained that Indonesia’s electric vehicle development roadmap is structured across three strategic phases to strengthen the national EV ecosystem. These include an initiation phase (2023–2026), followed by a consolidation phase (2026–2029), and a post-2030 expansion phase aimed at driving mass adoption while reinforcing low-emission technology penetration and EV industrialization.
The Ministry of Industry has also adjusted the minimum Domestic Component Level (TKDN) requirements in line with Presidential Regulation No. 79 of 2023. The thresholds are set at a minimum of 35 percent for 2019–2021, 40 percent for 2022–2026, 60 percent for 2027–2029, and at least 80 percent from 2030 onward. This policy is intended to maximize the empowerment of local component manufacturers and electric vehicle suppliers.
“The development of the national electric vehicle industry is being carried out in stages, beginning with technology introduction, investment attraction, infrastructure development, and local production based on TKDN. During the 2027–2029 period, the government is targeting the strengthening of the electric vehicle ecosystem with TKDN achievements above 60 percent, adjusted to investment realization as well as the readiness of supporting industries and suppliers,” said the Director General of ILMATE in a statement on Tuesday, February 3, 2026.
Building a Comprehensive Electric Vehicle Ecosystem
To build a comprehensive EV industry, the government is engaging multiple stakeholders from both the private sector and public institutions. Upstream efforts focus on accelerating battery industry development and the downstream processing of strategic minerals. On the manufacturing side, vehicle plants and component suppliers are being strengthened through TKDN policies and investment facilitation. Meanwhile, downstream adoption is being encouraged through the expansion of public charging infrastructure (SPKLU), fiscal incentives, and support from regional governments.
Secretary General of the Indonesian Automotive Industry Association (GAIKINDO), Kukuh Kumara, stated that the national automotive industry supports all technological approaches capable of reducing emissions, as long as they align with the Net Zero Emissions (NZE) 2060 target. He emphasized that policy direction clarity and regulatory consistency are essential for enabling long-term investment.
From the perspective of global industry players, VinFast Indonesia CEO Kariyanto Hardjosoemarto affirmed that Indonesia holds a strategic role for VinFast, not only as an electric vehicle market but also as a key element in the development of the EV ecosystem and the company’s regional expansion base. VinFast views Indonesia as a long-term partner in advancing the electric vehicle industry.
Industry participation continues to grow, reflected in the presence of global brands establishing production facilities and EV support networks in Indonesia, alongside efforts to develop domestic industrial technology and human resources to enhance global competitiveness.
Over the next 12 to 24 months, the Ministry of Industry has outlined three main priorities: ensuring the consistent implementation of the roadmap and TKDN policies, accelerating the strengthening of the battery industry, and boosting domestic market growth through sustained incentives.
“With a strong foundation, Indonesia has a significant opportunity to become a regional electric vehicle production hub, while simultaneously creating greater value for the national industry,” Setia Diarta concluded.
Conclusion
Through firm local content policies, integrated ecosystem development, and strong collaboration with domestic and global industry players, Indonesia is laying the groundwork for a resilient and competitive electric vehicle sector. With strategic priorities focused on battery industrialization, regulatory consistency, and market expansion, the country is positioning itself not only as a major EV market but also as a regional production powerhouse capable of delivering long-term economic value and supporting its clean energy transition.
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