Industry Minister urges fulfilment of Rp21.2 T investment commitment in LCEV programme
Investment realisation under the LCEV programme has exceeded Rp5.5 trillion out of a total commitment of Rp21.2 trillion.
Tangerang, Banten (ANTARA) - Minister of Industry Agus Gumiwang Kartasasmita has called on automotive industry players to promptly fulfil the Rp21.2 trillion investment commitment under the Low Carbon Emission Vehicle (LCEV) programme.
Speaking at the Gaikindo Indonesia International Auto Show (GIIAS) 2026 in Tangerang, Banten, on Thursday, Agus said the LCEV programme, running since 2021, has shown positive results for the development of the national automotive industry.
The tangible results include 16 assembly companies now supported by 322 domestic component suppliers, a figure that has grown 127 per cent since the programme began, as well as the absorption of 195,000 direct workers.
In addition, the local content level (TKDN) of electrified vehicles continues to rise, averaging between 40 and 46 per cent, with one model even reaching 80 per cent.
Nevertheless, Minister Agus stressed that investment realisation still needs to be accelerated, given that only Rp5.5 trillion of the total Rp21.2 trillion commitment has so far been realised.
“Investment realisation under the LCEV programme has exceeded Rp5.5 trillion out of a total commitment of Rp21.2 trillion. I appreciate that achievement. However, allow me to also state openly that all of us are waiting for the Rp21.2 trillion commitment to be realised,” he said.
Therefore, the government has conveyed three requests to all brand holders (APM) and automotive industry players.
“First, accelerate the realisation of the investment commitments you conveyed at the outset. Second, deepen the supply chain down to second- and third-tier suppliers, because that is where industrial resilience is truly tested. Third, make Indonesia a production base and export base for the region, not merely a large market,” he said.
As a form of support for long-term investment, the Industry Minister affirmed that the government will continue to maintain policy certainty and consistency.
“In return, the Government will safeguard what every long-term investment decision needs most, namely policy certainty and consistency,” he said.
His ministry will continue to provide assistance, evaluation and periodic monitoring, not to surveil, but to ensure that every commitment has a path towards realisation.