GAC Indonesia Targets 60% Local Content Next Year

GUANGZHOU, KOMPAS.com — GAC Indonesia is committed to targeting a Tingkat Komponen Dalam Negeri (TKDN) level of 60 per cent next year. Currently, all GAC Indonesia vehicle lines, both from the Aion and Hyptec brands, are in CKD (Completely Knocked Down) status or locally assembled. The assembly process takes place at the facility owned by PT National Assemblers, a subsidiary of Indomobil Group, located in Cikampek, West Java. “Currently, the TKDN for this year is still 40 per cent, which will change next year. Next year, the local content TKDN standard will be 60 per cent,” said Andry in Guangzhou, China, on Monday (20/4/2026). This increase in the TKDN standard presents both a challenge and an opportunity for automotive manufacturers. According to Andry, the rise in the standard requires each brand to expand cooperation with domestic component suppliers. To reach the 60 per cent figure, the most determining component portion is the battery. As the heart of electric vehicles, the battery has the highest economic value compared to other components. TKDN Regulations The term CKD refers to vehicles imported in separate component form and then fully assembled at a domestic factory. This differs from CBU (Completely Built Up), where vehicles are imported fully assembled from abroad. According to the Presidential Regulation, locally produced electric vehicles must achieve a TKDN of 40 per cent from 2022-2026, rising to 60 per cent in 2027-2029, and 80 per cent from 2030. By meeting this standard, manufacturers not only contribute to the national economy but also offer more competitive prices to Indonesian consumers.