Government Supports Eco-Friendly Automotive Technology Development

RRI.CO.ID, Jakarta - Indonesian Minister of Industry, Agus Gumiwang Kartasasmita, has announced his full support for the development of various eco-friendly automotive technologies. 

Minister Agus considers that technological innovations must contribute to a sustainable reduction in exhaust emissions.

An open technological approach is expected to accelerate the transition to low-emission vehicles. The government is striving to create an upstream-to-downstream industrial ecosystem to achieve national supply chain independence.

The Ministry reported that the roadmap for developing the electric vehicle (EV) ecosystem is divided into three periods. These strategic phases begin with an initiation phase and continue through to mass expansion after 2030.

“The development of national EVs will be conducted gradually, starting with the introduction of technology, attracting investment, building infrastructure, and local production based on the Domestic Component Level (TKDN),” said the Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry, Setia Diarta, in a written statement quoted on Friday, February 3, 2026.

The government is also adjusting the minimum TKDN threshold in accordance with applicable laws. TKDN is stipulated to be at least 40 percent for the 2022-2026 period.

“In the 2027-2029 period, the government targets to strengthen the EV ecosystem with a TKDN achievement of above 60 percent, consistent with investment realization and industry and supporting supplier readiness,” said Setia.

The policy to increase local content aims to empower domestic suppliers and support the manufacturing sector. The Ministry has set a target of 80 percent domestic utilization of spare parts by 2030.

Cooperation between the private sector and state authorities continues to be strengthened to build a comprehensive battery industry. Local administrations are also providing support through charging infrastructure and various special fiscal incentives.

“With a strong foundation, Indonesia has a great opportunity to become a center for EV production in the region. It can also create added value for the national industry,” said Setia.

Meanwhile, the Indonesian Motor Vehicle Industry Association (GAIKINDO) emphasized that national industry players fully support the concept of low-emission technology. 

The Secretary General of GAIKINDO, Kukuh Kumara, said that regulatory consistency is a key factor for investors considering long-term capital investments.

According to him, certainty regarding the direction of government policy is essential to maintain the sustainability of Indonesia's automotive business. The automotive industry is fully committed to achieving net-zero emissions by 2060.

On the other hand, VinFast Indonesia's CEO, Kariyanto Hardjosoemarto, said Indonesia plays a highly strategic role for the company. Kariyanto views Indonesia not only as a market but also as a key expansion base in Southeast Asia.

He said that the participation of global brands can be seen from the increasingly massive construction of production facilities and support networks in Indonesia. The presence of these international manufacturers is expected to strengthen the competitiveness of technology and the quality of domestic human resources.

The Ministry is focusing on three main priorities over a 12- to 24-month period. These priorities include ensuring road map implementation, strengthening the battery industry, and providing sustainable market incentives. (Gusti Panji/Lasti Martina)