Indonesia Eyes Cars, Electronics Made at Home
- 22 Mei 2026 12:19 WIB
- Voice of Indonesia
Key Points
- President Prabowo’s call for faster industrialization aims to boost Indonesia’s capacity to produce vehicles, electronics, and technology products.
- The President emphasized that Indonesia must strengthen its national manufacturing capacity and not merely serve as a market for imported products.
RRI.CO.ID, Jakarta - The Indonesian Minister of Industry, Agus Gumiwang Kartasasmita, welcomed President Prabowo Subianto’s call to accelerate national industrialization so Indonesia can produce its own strategic goods, ranging from motorcycles and cars to televisions and electronic products.
The President stressed that Indonesia must strengthen its manufacturing capacity and not merely serve as a market for imported goods.
Minister Agus said the President’s directive aligns with the New National Industrialization Strategy (SBIN), initiated by the Ministry, to strengthen the national manufacturing industry's structure, increase value added, and create quality jobs.
“The President’s speech reaffirms that industrialization is the main path toward national economic independence. Indonesia must not remain a consumer nation but must become a producer with strong manufacturing capabilities and global competitiveness,” Minister Agus stated in Jakarta on Wednesday, May 20, 2026, as quoted on the ministry's official website.
He emphasized that industrialization should be directed toward industries based on domestic natural resources, which can generate high-value derivative products and strengthen national industry chains from upstream to downstream.
Minister Agus noted that the President’s optimism about producing a national car is highly relevant to the government’s industrialization agenda. “If we talk about batteries, for example, this should be Indonesia’s competitive advantage, as we are the world’s largest nickel producer and also manufacture other automotive components through downstream processing,” he said.
According to Minister Agus, the President’s statement will boost the optimism and spirit of national industry players to move quickly in addressing global challenges while enhancing domestic competitiveness.
The minister highlighted that the non-oil and gas processing industry grew by 5.04 percent year-on-year in the first quarter of 2026, contributing the largest share to national GDP at 19.07 percent. The manufacturing sector’s contribution to economic growth reached 1.03 percent, the highest among all sectors.
Minister Agus stressed that strengthening industrialization requires pro-industry policies, including the Domestic Product Utilization Enhancement Program (P3DN), higher Domestic Component Level (TKDN), industrial downstreaming, human resource development, and expanded financing and investment support. He also underlined the importance of Danantara financing to support industrial development.
He added that the President’s directive for Indonesia to produce its own vehicles and technology products marks an important momentum to accelerate technology mastery and innovation-based industries.
Indonesia already has strong automotive industry capacity, serving as a production base in ASEAN, with locally made vehicles penetrating global export markets. Meanwhile, the domestic electronics industry continues to grow through increased investment and strengthened supply chains.
“With a large domestic market, competitive human resources, and strong investment potential, Indonesia must seize this opportunity to transform into an advanced industrial nation,” Minister Agus said.
The Ministry expressed confidence that synergy among government, industry, financial institutions, academia, and society will ensure the gradual and sustainable realization of the national industrialization targets outlined by President Prabowo. ***
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