Government involves automotive component SMEs in EV ecosystem
Antara, 29 May '26
Indonesia is bringing small and medium enterprises (SMEs) producing automotive components into the electric vehicle supply chain as the government seeks broader participation in the country's expanding EV industry.
Industry Minister Agus Gumiwang Kartasasmita stated that Indonesia has the potential to become a global EV player, supported by abundant resources, a large market, and integrated upstream-to-downstream policies. The minister stated that EV ecosystem development should involve not only large manufacturers but also national SMEs in order to strengthen domestic industrial capabilities.
"The government wants the EV ecosystem to involve not only large industries but also SMEs to encourage knowledge and technology transfer," Agus said on May 28th.
As part of that effort, the Industry Ministry's Directorate General of Small, Medium, and Various Industries collaborated with the Investment Ministry and manufacturers to explore EV supply chain opportunities in Cikarang, West Java, on May 22nd.
The event brought together component manufacturers, local governments, industry associations, and automotive companies to expand partnerships between SMEs and major EV producers.
"We hope this creates strategic partnerships between transportation equipment SMEs and large industries while providing information about EV component demand," Director General Reni Yanita said.
Reni stated that Indonesia's EV market continues to expand, creating broader opportunities for domestic component suppliers. Indonesia's electric bus fleet reached 798 units as of April, while electric two-wheelers totalled sales in February represented around 65% of the country's EV population.
"This presents an opportunity that automotive component SMEs must optimise for future growth," Reni said.
EV market expansion has also been supported by the growth of charging infrastructure. State utility PLN recorded 4,769 charging stations operating across 3,097 locations as of April. Charging infrastructure is targeted to increase to 62,918 units by 2030 to support projected demand under the Energy Ministry's EV roadmap.
"The trend reflects changing consumer preferences towards energy-efficient and environmentally friendly vehicles while creating opportunities for SMEs," Reni said.
