Government does not position automotive technologies as rivals

Industry Minister Agus Gumiwang Kartasasmita has stated that the government does not position one automotive technology as the opponent of another in driving the transformation of the national automotive industry. Speaking at the Gaikindo Indonesia International Auto Show (GIIAS) 2026 in Tangerang, Banten, on Thursday, the minister said various technologies have an equal role in achieving emission reduction targets while strengthening national energy resilience. “We are not in a position to place one technology as the enemy of another. Battery-based electric vehicles, hybrid vehicles, increasingly efficient internal combustion engines, and the utilisation of biodiesel and bioethanol are all paths towards the same goal, namely lower emissions and stronger energy resilience. What we are accelerating is the goal,” Agus said. According to Agus, Indonesia’s main challenge is not determining which automotive technology will dominate the market in the future, but rather ensuring the domestic industry gains the maximum economic benefit from these technological developments. Agus reminded that the transition process towards more environmentally friendly technology must be accompanied by industrial deepening. Without strengthening domestic production capacity, Indonesia will merely shift from one form of import dependency to another. “A transition not accompanied by industrial deepening will only transfer our dependency from one form of import to another form of import. That is not transformation,” he said.