Indonesia's National Car to Exceed 70% Local Content, Currently Being Designed by Pindad

Industry Minister Agus Gumiwang Kartasasmita has revealed the latest progress on the national car project being prepared by the government. The vehicle is currently in the design phase and is expected to have a higher level of domestic components (TKDN) than most vehicles currently circulating in Indonesia. “Our electric cars have an average TKDN of 30 to 70 per cent, though we certainly hope that the national car currently being designed by Pindad will have a higher TKDN value,” Agus said during a working meeting with House Commission VII. The discussion about the national car arose when the Ministry of Industry explained the challenges still facing Indonesia’s manufacturing industry. The issue is not only about final products being manufactured domestically, but also the capability of the national industry to produce its own manufacturing machinery. Agus considers it insufficient to merely pursue TKDN figures for finished products. Behind a product, there remains significant dependence on technology and machinery originating from abroad. “When I visit factories, I always ask what the TKDN percentage is. When I go inside and look at the machines, it turns out the machines are imported. That is our challenge,” he said. Previously, Minister for National Development Planning/Head of Bappenas Rachmat Pambudy stressed that Indonesia is entering a new phase in the long struggle to achieve automotive industry independence. He highlighted the importance of industrial estates, supply chains, integrated technology development, and forming a national industry with strong competitiveness. PT Pindad President Director Sigit P. Santosa stated that the national car project cannot stop at being a slogan. Pindad has prepared industrial land in Subang and is targeting a production capacity of 500,000 units per year, starting with 100,000 units in 2028 as the initial phase of production. “The consistent message from all commissions to Pindad is not to become a flash in the pan. The development of a national car cannot be merely a programme; we must conduct piloting for technological innovation and build its ecosystem,” he said previously.