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The Ministry of Industry Encourages IKM to Enter the National Electric Vehicle Supply Chain

5 hours ago | Green Industrial


Jakarta, INTI - The Ministry of Industry (Kemenperin) continues to strengthen the development of the national Battery Electric Vehicle (BEV) industrial ecosystem as part of its industrial transformation strategy towards a sustainable green economy. This effort is being carried out by encouraging the involvement of small and medium-sized enterprises (IKM) in the national electric vehicle supply chain.

Minister Agus Gumiwang Kartasasmita stated that Indonesia has a significant opportunity to become a major player in the global electric vehicle industry. This potential is supported by its rich natural resources, large domestic market, and the government's commitment to developing the electric vehicle ecosystem from upstream to downstream.

According to Agus, the government continues to strengthen the BEV industrial structure to ensure global competitiveness and optimal added value for the national economy. Therefore, the development of the electric vehicle ecosystem should not only involve large industries but also encourage the active participation of national IKM.

"The government is striving to ensure that the BEV industrial ecosystem is not only filled by large industrial players, but also by small and medium-scale industries, so that the transfer of insights, knowledge, and technology for the future development of the domestic industry can occur," he emphasized.

Connecting IKM with Large Industries

As a concrete step, Kemenperin, through the Directorate General of Small, Medium, and Miscellaneous Industries (IKMA), in collaboration with the Directorate General of ILMATE, the Ministry of Investment/BKPM, PT SGMW Motor Indonesia, and PT VKTR Teknologi Mobilitas, held an Exploration of Business Opportunities for IKM in the Transportation Equipment Supply Chain in Cikarang, West Java, on May 22, 2026.

The event was attended by several IKM in the automotive component industry, local governments supervising IKM, associations, and the national automotive component industry. This event aimed to open up opportunities for collaboration and strategic partnerships between IKM and the large electric vehicle industry.

The Director General of IKM at Kemenperin, Reni Yanita, stated that the event served as a means to identify business opportunities and provide an understanding of the needs of the electric vehicle industry, including aspects of fulfilling the Domestic Component Level (TKDN).

"We hope this activity will unlock the potential for strategic partnerships between transportation equipment IKM and large industries and provide information on the need for electric vehicle components to meet TKDN requirements," said Reni.

Number of Electric Vehicles in Indonesia

Reni explained that the development of the national electric vehicle industry is currently showing a very positive trend. According to Gaikindo data, sales of BEVs in the first quarter of 2026 reached 33,150 units, a 95.9 percent increase compared to the same period the previous year.

Furthermore, the national electric bus population reached 798 units as of April 2026. Meanwhile, electric two-wheeled vehicles reached 236,451 units as of February 2026, or approximately 65 percent of the total electric vehicle population in Indonesia.

"This represents a potential that automotive component IKM must maximize to benefit from and maximize future business opportunities," she said.

The growth of the electric vehicle market is also supported by the expanding public electric vehicle charging infrastructure. According to data from PT PLN, as of April 2026, there were 4,769 charging units available at 3,097 locations in Indonesia. This number is targeted to increase to 62,918 units by 2030 to support the projected 943,764 BEV units as per the Ministry of Energy and Mineral Resources' roadmap.

Kemenperin assessed that increasing consumer interest in energy-efficient and environmentally friendly vehicles presents significant opportunities for automotive component IKM to enter the electric vehicle supply chain. Through business exploration activities, Kemenperin provides IKM with an understanding of market opportunities, technology standards, quality, and the sustainability of the electric vehicle industry to enhance business capacity and competitiveness in both domestic and global markets.

Conclusion 

Kemenperin continues to strengthen the national electric vehicle industry ecosystem by encouraging the involvement of IKM in the BEV supply chain. Indonesia is considered to have a significant opportunity to become a major player in the global electric vehicle industry. Kemenperin is bridging IKM with large industries through business opportunity exploration activities to enhance partnerships and technology transfer. The development of the national electric vehicle industry is showing a positive trend, with BEV sales reaching 33,150 units in the first quarter of 2026, a 95.9 percent increase compared to the previous year. This growth is also supported by the expansion of public electric vehicle charging infrastructure. Kemenperin hopes that IKM players can take advantage of this opportunity by increasing their understanding of technology, quality, and sustainability standards to be able to compete in both domestic and global markets.

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Indonesia Technology & Innovation
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