Government to Offer Greater Incentives for EV Producers with Higher Local Content
JAKARTA — Investment and Downstream Industries Minister/BKPM Head Rosan Roeslani has confirmed the government will provide greater incentives to electric vehicle (EV) producers with higher levels of local content (TKDN).
He stated that the higher the local content of an electric vehicle, the greater the incentives the government will offer to the company.
"We will certainly provide even greater incentives if they increase their TKDN. So the concept is that we will change this — with higher TKDN, we will provide even greater incentives," Rosan said at the New Energy Vehicle Summit 2025 at MGP Space, Jakarta, on Tuesday (6 May 2025).
He revealed that between March 2020 and March 2025, seven companies had committed to investing in Indonesia to build EV production facilities: BYD, Citroen, AION, Maxus, Geely, FinVast, and Volkswagen (VW).
Rosan said these companies had already begun construction, with a total investment value of Rp 15.4 trillion to produce electric cars with a capacity of 281,000 units per year.
"So those are the ones that have declared their commitment and have already started their investments," he said.
According to him, demand for electric vehicles will continue to rise, and these investments will support the fulfilment of future EV needs.
Based on data from the Association of Indonesian Automotive Industries (Gaikindo), sales of battery-based electric vehicles in 2024 grew by 151.4 per cent, whilst the average annual sales growth between 2019 and 2024 reached 331 per cent.
"We can see that electric vehicle production will continue to increase, and by 2030 we predict that EV production can reach 2.5 million units per year," Rosan said.
He stated that the higher the local content of an electric vehicle, the greater the incentives the government will offer to the company.
"We will certainly provide even greater incentives if they increase their TKDN. So the concept is that we will change this — with higher TKDN, we will provide even greater incentives," Rosan said at the New Energy Vehicle Summit 2025 at MGP Space, Jakarta, on Tuesday (6 May 2025).
He revealed that between March 2020 and March 2025, seven companies had committed to investing in Indonesia to build EV production facilities: BYD, Citroen, AION, Maxus, Geely, FinVast, and Volkswagen (VW).
Rosan said these companies had already begun construction, with a total investment value of Rp 15.4 trillion to produce electric cars with a capacity of 281,000 units per year.
"So those are the ones that have declared their commitment and have already started their investments," he said.
According to him, demand for electric vehicles will continue to rise, and these investments will support the fulfilment of future EV needs.
Based on data from the Association of Indonesian Automotive Industries (Gaikindo), sales of battery-based electric vehicles in 2024 grew by 151.4 per cent, whilst the average annual sales growth between 2019 and 2024 reached 331 per cent.
"We can see that electric vehicle production will continue to increase, and by 2030 we predict that EV production can reach 2.5 million units per year," Rosan said.