AHY: Indonesia's Electric Vehicle Industry Must Start with Local Content

Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) has said that Indonesia’s electric vehicle (EV) brand can start by increasing the domestic component level (TKDN). He believes Indonesia is capable of matching neighbouring countries that have already developed their electric vehicle industries. “The TKDN must be increasingly high and dominant. Over time, it can truly be 100 percent made in Indonesia,” he said after attending the Grab Green Steps Movement event at Taman Mini Indonesia Indah, Jakarta, Monday, 29 June 2026. AHY stated that technological development will not be left behind because Indonesia has the best engineers. Development can be carried out through joint research and joint production schemes with large corporations or other countries to advance the EV industry in Indonesia. He acknowledged that the government needs to build an ecosystem, including introducing supportive policies to encourage industrial development and vehicle electrification. Various incentives are also needed to facilitate the industry. “But the President also often emphasises that we must have a strong determination to present a national automotive industry, and we are starting with the electric vehicle-based automotive industry,” he said. AHY observed the progress of China’s electric vehicle industry, which now dominates the global market. However, he noted that it all began with something imperfect and required research and further refinement. “That is the nature of an industry,” he remarked. To date, Indonesia does not yet have its own electric vehicle brand. However, the government is planning to produce a national car under the brand I2C (Indigenous Indonesian Car), which is being developed by PT Teknologi Militer Indonesia.