Automotive Industry Highlights Licensing and TKDN Certification Issues
National automotive industry players and Japanese partners presented several inputs regarding the investment climate in Indonesia during a Business Discussion Lunch in Nagoya, Japan, on Saturday, 19 September 2026. Key concerns included licensing, access to financing for small and medium-sized enterprises (SMEs) supporting the automotive sector, and local content (TKDN) certification during the transition towards electric vehicles.
The Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, stated that the government welcomes this feedback and will follow up through policy improvements, including addressing ongoing investment barriers, according to a press release on Sunday, 20 September 2026.
The meeting, held at Izakaya Morinokura, was part of a series of working visits by the Coordinating Ministry for Economic Affairs in Nagoya. The government delegation was led by Susiwijono and accompanied by the Deputy for Coordination of Trade and Digital Economy, Ali Murtopo Simbolon. Executives from PT Toyota Motor Manufacturing Indonesia (TMMIN), Dendu Indonesia, Aisin Indonesia, and Advics Indonesia were also in attendance.
According to Susiwijono, the series of meetings in Nagoya demonstrates that industrial competitiveness depends on technological mastery, the quality of human resources, and the strength of the supply chain. He noted that these three elements are vital components in the development of Indonesia’s manufacturing and automotive industries.
During the meeting, the government noted that Indonesia has signed 25 international trade agreements, including both Free Trade Agreements (FTA) and Comprehensive Economic Partnership Agreements (CEPA). The government also stated that the ratification process for several agreements has been completed to expand market access.
One of the agreements set for imminent implementation is the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). The ratification process is scheduled to begin in November 2026, with a target implementation date of January 2027.
Domestically, the government stated it continues to strengthen consumption and investment as pillars of the economy. Social assistance programmes, subsidies, and fiscal incentives are aimed at maintaining public purchasing power. The government is also exploring the development of new sectors, particularly artificial intelligence (AI) and semiconductors.
Indonesia has previously established cooperation with ARM and joined WAICO. The government is also in communication with PAX Silica. Such collaborations are directed towards increasing productivity, including within the automotive industry, which is becoming increasingly dependent on semiconductors and AI-based technologies.