Indonesia sees strong EV industry chain potential, minister says

Kartasasmita said investments should extend beyond vehicle production to strengthen the national supply chain, urging BYD to deepen its integration into Indonesia’s EV ecosystem.

The minister made the remarks on Thursday while inaugurating a production facility operated by Chinese electric vehicle maker BYD in West Java.

Kartasasmita welcomed BYD’s decision to build the facility in West Java, one of Indonesia’s largest industrial centers.

He said the factory opening comes as Indonesia’s EV industry grows rapidly. As of April 2026, Indonesia had produced 468,231 EV units, including 242,909 two-wheelers and 223,100 four-wheelers.

In the first half of 2026, battery electric vehicle sales reached 70,095 units, representing 16.06 percent of the market, while hybrid vehicle sales totaled 40,405 units, or 9.26 percent.

Kartasasmita said BYD led Indonesia’s four-wheel vehicle sales in the first half of 2026, accounting for 43.2 percent of the total market.

He said BYD products had achieved domestic component levels, known as TKDN, ranging from 40.8 percent to 47 percent.

The Indonesian Automotive Industry Association, or GAIKINDO, recorded 93,869 BYD EVs sold to Indonesian consumers from 2024 through the first half of 2026.

Kartasasmita said the sales figure underscored BYD’s rapid expansion in Indonesia and its growing role in the country’s automotive industry.

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Translator: Ahmad Muzdaffar Fauzan, Nabil Ihsan