Minister of Industry: Indonesia Possesses Strong Capital to Build Complete EV Industry

The Minister of Industry, Agus Gembwang Kartasasmita, has emphasised that Indonesia possesses strong capital to build a complete electric vehicle (EV) industry, spanning from upstream to downstream processes.

According to the Minister, this potential must be strengthened through investments that do not merely focus on vehicle production but are also integrated with the entire national industrial supply chain. “Indonesia has strong capital to build the electric vehicle industry chain in its entirety, from the raw material processing industry, battery and battery pack manufacturing, electric vehicle manufacturing, domestic market development, to the battery recycling industry,” said Agus during the inauguration of BYD’s production facility in Subang, West Java, on Thursday.

The government hopes that BYD’s investment in Indonesia will continue to expand, becoming a vital component of an increasingly integrated national EV industrial ecosystem. He noted that BYD’s decision to establish production facilities in West Java is a strategic move, given that the province serves as one of Indonesia’s largest industrial hubs.

Furthermore, the Minister observed that the inauguration of BYD’s production facility occurs amidst positive growth in the national EV market. As of April 2026, the EV population in Indonesia has reached 468,231 units, comprising 242,909 two-wheelers and 223,100 four-wheelers.

This trend is also reflected in national four-wheel vehicle sales. During the first half of 2026, Battery Electric Vehicle (BEV) sales reached 70,095 units with a market share of 16.06 per cent, while Hybrid Electric Vehicle (HEV) sales recorded 40,405 units, capturing a 9.26 per cent market share.

Additionally, in a relatively short period, BYD has demonstrated significant growth in the Indonesian market. According to GAIKINDO data, from 2024 through the first half of 2026, the company has recorded sales of 93,869 units. BYD products marketed in Indonesia also maintain a Domestic Component Level (TKDN) ranging between 40.8 per cent and 47 per cent.

These achievements position BYD as the market leader for battery-based four-wheel electric vehicles in Indonesia, with a market share of 43.2 per cent. Nevertheless, the Government emphasised that success in the domestic market must be accompanied by the strengthening of the domestic manufacturing base.