Indonesia Enhances Electric Vehicle Ecosystem Through Collaboration Between Government and Automotive Industry

RRI.CO.ID, Jakarta – The Indonesian government continues to  foster  its position as a major player in the electric vehicle (EV) ecosystem through policy synergy and the participation of national and global automotive industry players. The government encourages the involvement of the automotive industry so that Indonesia has a strong and independent electric vehicle supply chain.

In a press release received by RRI Voice of Indonesia on Thursday, 5 February 2026, Minister of Industry, Agus Gumiwang Kartasasmita, expressed support for various automotive technology developments, as long as they contribute to reducing emissions and environmental sustainability. This open technological approach is expected to foster innovation and accelerate the transition toward low-emission vehicles.

The Director General of Metal, Machinery, Transportation Equipment and Electronics Industries (ILMATE) at the Ministry of Industry, Setia Diarta, stated that the roadmap for developing electric vehicles in Indonesia is designed in three strategic periods to strengthen the national EV ecosystem. It starts with the initiation period (2023-2026), followed by the consolidation period (2026-2029), and post-2030 expansion to drive mass adoption and strengthen the penetration of low-emission technology and the industrialization of electric vehicles.

The Ministry of Industry also adjusted the minimum domestic component level (TKDN) by setting it at a minimum of 35 percent for 2019-2021, 40 percent for 2022-2026, then a minimum of 60 percent for 2027-2029, and a minimum of 80 percent for 2030 and beyond. This policy aims to optimize the empowerment of domestic electric vehicle component and supplier industries.

"The development of national electric vehicles is being carried out in stages, starting with the introduction of technology, attracting investment, building infrastructure, and local production based on domestic content. In the 2027–2029 period, the government aims to strengthen the electric vehicle ecosystem with a domestic content achievement of over 60 percent, adjusted to investment realization and the readiness of supporting industries and suppliers," Setia Diarta stated.

The participation of automotive industry players continues to increase, as reflected in the presence of global brands building production facilities and EV support networks in Indonesia, as well as efforts to establish production facilities and EV support networks in Indonesia. The efforts are also  to develop domestic industry human resources and technology to strengthen global competitiveness.

In the next 12 to 24 months, the Ministry of Industry has set three main priorities: ensuring the implementation of the roadmap and domestic content (TKDN), accelerating the strengthening of the battery industry, and boosting domestic market growth thru sustainable incentives.

"With a strong foundation, Indonesia has a great opportunity to become the center of electric vehicle production in the region, while also creating added value for the national industry," he conveyed.