The Indonesian government is pursuing the development of the electric vehicle (EV) ecosystem through coordinated policies and the participation of national and global automotive industry players.

The government is encouraging industry involvement with the objective of developing an electric vehicle supply chain within the country.

In a press release received on February 5th, 2026, the Minister of Industry, Agus Gumiwang Kartasasmita, stated that the government supports automotive technology developments that contribute to emissions reduction and environmental sustainability.

The technology-neutral approach is intended to support innovation and facilitate the transition towards low-emission vehicles.

The Director General of Metal, Machinery, Transportation Equipment and Electronics Industries (ILMATE) at the Ministry of Industry, Setia Diarta, stated that Indonesia's electric vehicle development roadmap has been structured into three phases. These include the initiation phase (2023-2026), the consolidation phase (2026-2029), and the post-2030 expansion phase, which is focused on supporting wider adoption and increasing the penetration of low-emission technologies and electric vehicle industrialisation.

The Ministry of Industry has revised the minimum domestic component level (TKDN), setting it at 35% for 2019-2021, 40% for 2022-2026, 60% for 2027-2029, and 80% from 2030 onwards. The policy is intended to increase the use of domestically produced electric vehicle components and suppliers.

"The development of national electric vehicles is being implemented in stages, beginning with technology introduction, investment attraction, infrastructure development, and local production based on domestic content. During the 2027-2029 period, the government aims to increase domestic content levels to above 60%, subject to investment realisation and the readiness of supporting industries and suppliers," Setia Diarta stated.

Participation by automotive industry players has increased, as reflected in the establishment of production facilities and EV support networks by global brands in Indonesia.

These activities are accompanied by efforts to develop domestic human resources and technological capabilities within the industry.

For the next 12 to 24 months, the Ministry of Industry has identified three priorities: implementation of the roadmap and domestic content (TKDN) requirements, acceleration of battery industry development, and measures to support domestic market growth through incentives.

"With the existing policy framework, Indonesia has the potential to serve as a regional location for electric vehicle production, while contributing to value creation within the national industry," he stated.