Ministry of Industry Notes Shift in Consumer Preference Towards Energy-Efficient Vehicles
Society is beginning to choose vehicles that are more energy-efficient and environmentally friendly. This serves as a positive signal for the transformation of the national automotive industry.
Jakarta (ANTARA) - The Ministry of Industry (Kemenperin) assesses that there has been a change in consumer preferences towards energy-efficient vehicles, which is also driving a significant increase in the electric vehicle (EV) market.
“A change in consumer preferences has occurred. Society is starting to choose vehicles that are more energy-efficient and environmentally friendly. This is a positive signal for the transformation of the national automotive industry,” stated the Director General of Metal, Machinery, Transportation Equipment, and Electronics Industry (ILMATE) of Kemenperin, Setia Diarta, during a discussion on the Surge in Global Oil Prices, Momentum to Boost EV Adoption in Jakarta on Wednesday.
Based on Kemenperin data, there are currently 14 electric car assembly companies with an annual production capacity of 409,860 units, 68 electric motorcycle companies with a capacity of 2.51 million units per year, and nine electric bus companies with a capacity of 4,100 units per year. The total investment in this sector reaches Rp25.67 trillion.
Meanwhile, the population of electric vehicles in Indonesia up to March 2026 reaches 358,205 units, consisting of 236,451 electric motorcycles, 119,638 electric passenger cars, 798 electric buses, and 537 electric commercial vehicles.
In 2025, the market share of four-wheeled electric-based vehicles reaches 21.71 percent, comprising BEV at 12.93 percent, hybrid electric vehicle (HEV) at 8.13 percent, and PHEV at 0.65 percent.
Meanwhile, the portion of electric-based vehicle production reaches 11.1 percent of the total national four-wheeled vehicle production.
Setia emphasised that the optimisation programme for domestic component levels (TKDN) is the main focus to ensure that electric vehicle investments provide maximum added value domestically.
The minimum TKDN threshold is set at 40 percent until 2026, increasing to 60 percent in 2027–2029, and 80 percent starting from 2030.
“We want electric vehicle investments not to stop at assembly, but to continue developing towards deepening the industrial structure, including batteries, main components, and the national supply chain,” he asserted.
Meanwhile, the General Secretary of the Indonesian Automotive Industry Association (Gaikindo), Kukuh Kumara, assessed that a structural change has occurred in the national automotive industry from domination by one type of powertrain to multi-powertrain.
“The evidence is that sales of conventional engine cars continue to decline. Conversely, electrified cars are increasing,” he said.
From the industry players’ perspective, Head of PR and Government at BYD Indonesia, Luther T Panjaitan, affirmed his company’s commitment to building the EV ecosystem in the country, starting from product provision to network development and production facilities.
In line with that, CEO of Degree Synergy International, Andrea Suhendra, stated that local governments are advised to impose progressive EV tax rates to maintain sales momentum under the new electric car tax scheme.
Specifically, EVs priced above Rp500 million could be subject to high tariffs, while those below Rp300 million should face low tariffs.
The government is also seen as needing to provide greater room for PHEV as a transitional bridge from ICE vehicles to EVs.
This is because, according to him, PHEV’s pure electric mode can be used in the city, while the internal combustion engine still supports long-distance travel.