DPR's Commission VII: China's Electric Vehicle Industry Must Still Meet TKDN Requirements

Jakarta (ANTARA) - Deputy Chair of the House of Representatives Commission VII, Chusnunia, stated that the Chinese electric vehicle industry in Indonesia must still meet the Domestic Component Level (TKDN), in accordance with the prevailing domestic regulations. “Even though they sell well, Chinese products often use cheaper imported components. This triggers discussions regarding relaxing rules for investment versus the urgency of industrial localisation,” she said in a statement received in Jakarta on Wednesday. According to her, the growth of the Chinese automotive industry in Indonesia faces challenges in meeting the TKDN targets. The TKDN regulations for electric vehicles are stipulated in Presidential Regulation (Perpres) No. 79 of 2023 on the Acceleration of the Battery-Based Electric Motor Vehicle Programme for Road Transportation. She views policy flexibility regarding TKDN as a double-edged sword because, on one hand, it can attract investment, but on the other, it risks slowing down the local component industry. “We must monitor this together and encourage the government to hold Chinese EV producers, such as BYD, accountable for meeting the 40 percent TKDN requirement to obtain incentives,” she added. In addition, she emphasised that no less important is the long-term policy for the industry, which must still emphasise TKDN localisation to build national automotive industry resilience. Nevertheless, according to her, electric vehicles represent the future of the national industry, focused on achieving energy independence, reducing pollution, and strengthening economic competitiveness through an integrated battery ecosystem. “The future success of this industry depends on collaboration between the government and the private sector in building a sustainable ecosystem, from upstream to downstream,” Chusnunia stated.