The Ministry of Industry (Kemenperin) stated that electric vehicle (EV) manufacturers, including BYD and several other brands, are scheduled to commence local production after Eid al-Fitr, which is expected to fall at the end of March 2026.

The Director General of the Metal, Machinery, Transportation Equipment and Electronics Industry (ILMATE) at the Ministry of Industry, Setia Diarta, said that EV manufacturers' investments comply with the National Electric Vehicle Roadmap, as stipulated in Presidential Regulation (Perpres) No. 79/2023 and its derivative regulation, Minister of Industry Regulation (Permenperin) No. 28/2023.

He explained that the policy requires electric vehicle manufacturers to achieve a minimum domestic component content (TKDN) of 40% by 2026, with a gradual increase thereafter.

Consequently, several EV manufacturers are required to implement local production during the current year.

"The programme is proceeding according to the established plan. The investment mechanisms offered to several manufacturers have been implemented. VinFast already has a factory on 171 hectares of land, and BYD is scheduled to begin production after Eid," Setia said at the EVolution Indonesia Forum 2026 on February 3rd, 2026.

Chinese electric vehicle manufacturer BYD plans to begin operations at its production facility in Indonesia in the first quarter of 2026. The facility has been developed with an investment of approximately IDR 11.2 trillion (US$ 672 million).

Vietnamese manufacturer VinFast has invested more than US$ 300 million, and its Subang manufacturing facility occupies 171 hectares of land.

VinFast stated that it intends to increase its total investment in Indonesia to US$ 1 billion, equivalent to IDR 16 trillion.

Under this phase, production capacity is expected to be expanded to serve domestic demand and support export activity.

Several manufacturers have utilised import incentives, including BYD, Geely, VinFast, and National Assembler, which manages the Citroen, Aion, Maxus, and Volkswagen (VW) brands.

The total investment from these companies amounts to approximately IDR 15.52 trillion, with a requirement to commence local battery electric vehicle (BEV) production by 2026.

"Several other brands that previously imported IKD (incomplete knocked down) units, due to components not yet being produced domestically, have also started importing them. After Eid, these brands are expected to resume full production," he said.

Regarding electric vehicle market performance, data from the Association of Indonesian Automotive Industries (Gaikindo) shows that wholesale distribution of battery electric vehicles (BEVs) in 2025 increased by 140.64% year on year compared with 2024.

Setia stated that the government aims to ensure that all electrified vehicle technologies are included within the policy framework.

"The target is low-carbon emission vehicles (LCEVs). Technologies that meet low-emission criteria will be supported, including BEVs," he said.