JAKARTA \u2014 The government is encouraging an increase in domestic\ncomponent levels (TKDN) to strengthen the national manufacturing\nindustry. However, local drone manufacturers still face challenges\nbecause several key components, such as batteries and electric motors,\ncannot yet be produced entirely in Indonesia.<\/p>\n
Setia Diarta, Director General of Metal, Machinery, Transportation\nEquipment and Electronics Industries at the Ministry of Industry, said\nstrengthening the component industry was an important part of developing\nthe national electric vehicle sector. The government has set a target\nfor battery electric four-wheel vehicles to reach a minimum TKDN of 40%\nby 2026, rising to 60% in 2027\u20132029 and 80% from 2030.<\/p>\n
\u201cThese higher targets reflect the stages of deeper industrial\ndevelopment. We are moving from market development and attracting\ninvestment towards greater use of batteries and modules made\ndomestically, and then strengthening the capacity to produce key\ncomponents, including battery cells, in Indonesia,\u201d Setia said at the\nopening of the Periklindo Electric Vehicle Show (PEVS) 2026 on Thursday\n(29 October 2026).<\/p>\n
The Ministry of Industry recorded 541,000 electric vehicles in\nIndonesia as of August 2026. The total includes two- and three-wheelers,\nfour-wheel vehicles, commercial vehicles and other specialised\nvehicles.<\/p>\n
Setia said growth in the electric vehicle market needed to be matched\nby increased production capacity, a stronger component industry and\nworkforce development. The government wants Indonesia to become not only\na market but also a production base for electric vehicles.<\/p>\n
The challenges of strengthening local components are also evident in\nthe drone industry. Frogs Indonesia chief executive Adhitya Chandra said\nthe company\u2019s agricultural drones had a TKDN of about 66%. However,\nseveral important components, including batteries, brushless DC motors\nand propellers, were still imported.<\/p>\n
Frogs Indonesia makes drones for a range of purposes, from land\nmapping and surveillance to agricultural spraying and goods transport.\nThe company is also developing its own flight-control system.<\/p>\n
Adhitya said market growth was needed to enable local manufacturers\nto increase production volumes and reduce costs. Domestic products, he\nsaid, still had to compete with imported drones sold at lower\nprices.<\/p>\n
\u201cAn industry can run well if there is a market. If there is no\nmarket, we will not be able to produce large volumes,\u201d Adhitya said.<\/p>\n
He disclosed that Frogs Indonesia\u2019s sales in 2026 had fallen by\nnearly 60% compared with the previous year. The company estimates that\nit will sell about 130 drones of various types this year.<\/p>\n
Adhitya nevertheless sees opportunities to use drones in agriculture,\nincluding for land mapping and spraying fertiliser and pesticides. He\nsaid the need for drones for the government\u2019s paddy-field development\nprogramme could exceed 7,000 units, although the figure still needs to\nbe verified against the programme\u2019s procurement requirements.<\/p>\n
Increased demand could help manufacturers expand production and\ndevelop local component suppliers, Adhitya said. This would gradually\nreduce reliance on imported products.<\/p>\n
Meanwhile, National Development Planning Minister and Bappenas head\nRachmat Pambudy said the development of an electric vehicle ecosystem\nrequired certainty over medium-term incentives, the construction of\npublic electric vehicle charging stations (SPKLU), a battery-recycling\nindustry and financing involving a range of stakeholders.<\/p>\n
Rachmat said funding for the energy transition could not depend\nentirely on the state budget. Businesses and investors therefore needed\nto be involved in supporting investment and industrial development.<\/p>\n
Efforts to increase TKDN in electric vehicles and develop the drone\nindustry underline the importance of component availability, sufficient\nmarket demand and investment. Higher local content is expected not only\nto increase domestic production, but also to foster supplier industries\nand improve the competitiveness of national products.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/local-drone-tkdn-reaches-66-but-key-components-still-imported-1793285448", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }