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Economy

Government Strengthens Indonesia Auto Industry Through TKDN and EV Ecosystem Strategy

13 Apr, 2026
Government Strengthens Indonesia Auto Industry Through TKDN and EV Ecosystem Strategy

The Ministry of Industry continues to strengthen Indonesia’s automotive industrial structure as part of efforts to accelerate transformation toward a globally competitive electric vehicle ecosystem, particularly for two- and three-wheeled vehicles (12/04). Kementerian Perindustrian stated that the strategy focuses on increasing Domestic Component Level (TKDN) and implementing the Indonesian National Standard (SNI).

The initiative is aligned with the strong performance of the non-oil and gas manufacturing sector, which remains a key contributor to national GDP, investment, exports, and employment absorption.

Minister of Industry Agus Gumiwang Kartasasmita emphasized that the government continues to optimize the deepening of the domestic automotive industry structure through TKDN enhancement policies and strengthening the electric vehicle ecosystem.

TKDN Policy and Electric Vehicle Ecosystem as Strategic Priority

The government places the development of two- and three-wheeled vehicle industries, especially electric vehicles, as a strategic priority due to its large multiplier impact on investment, job creation, and industrial independence.

According to the Ministry, policies will continue to support increased local content and technology transfer to strengthen national competitiveness in the automotive sector.

The industry has shown positive performance with increasing manufacturers and strong production capacity for both conventional and electric vehicles.

Domestic sales remain stable, while exports and electric vehicle adoption continue to grow, indicating strong future prospects. The population of electric two-wheeled vehicles has also increased significantly in recent years, reflecting rising public interest in efficient and environmentally friendly transportation.

DPR RI Supports Industrial Development and Investment Direction

A working visit by Komisi VII DPR RI to QJMotor Manufacture Indonesia in Cikarang highlighted coordination between the government, legislators, and industry players.

The visit reviewed investment readiness and production capacity while also discussing the direction of Indonesia’s automotive industry development, including strengthening domestic industrial structure and implementing TKDN and SNI.

Saleh Partaonan Daulay stressed that TKDN is a key foundation for building a self-reliant and sustainable automotive industry.

He stated, “We emphasize the importance of every manufacturing investment not only being market-oriented, but also capable of increasing domestic value-added through measurable and gradual TKDN implementation.”

QJMotor Commitment to Indonesia as Regional Production Base

QJMotor Manufacture Indonesia expressed its commitment to making Indonesia a production base for motorcycles in Southeast Asia.

This plan includes strengthening manufacturing capacity, developing local supply chains, and improving product quality in accordance with global standards.

The company’s initiative is supported by government policy and cross-sector collaboration to accelerate the transformation of Indonesia’s automotive industry into a more independent and sustainable ecosystem.

Setia Diarta stated that the government will continue to oversee industrial growth to ensure sustainable development through a stronger industrial structure, increased investment, and collaboration between the government, parliament, and industry players.



PHOTO: MINISTRY OF INDUSTRY

This article was created with AI assistance.

We make every effort to ensure the accuracy of our content, some information may be incorrect or outdated. Please let us know of any corrections at [email protected].

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