Ministry of Industry Promotes Electric Vehicle Market through Early Adopter Strategy

The Ministry of Industry (Kemenperin) is strengthening the role of early adopters or initial users to promote the growth of the electric vehicle (EV) market in Indonesia. This strategy is deemed essential for creating stable demand while accelerating the development of the national electric vehicle industry from upstream to downstream. “The government is seriously building the national electric vehicle industry comprehensively. We are not only promoting the production side but also providing a strong market signal by making the government an early adopter of domestically produced electric vehicles,” said Minister of Industry (Menperin) Agus Gumiwang Kartasasmita in a statement in Jakarta on Wednesday (22/4/2026). Based on Kemenperin data, the battery-based electric motor vehicle (KBLBB) industry market in Indonesia has experienced exponential growth, with a compound annual growth rate (CAGR) of more than 140% over the last five years. In addition, the market share of electric-based vehicles continues to rise. In 2025, the electric vehicle market share reached 21.71%, comprising battery electric vehicles (BEV) at 12.93%, hybrid electric vehicles (HEV) at 8.13%, and plug-in hybrid electric vehicles (PHEV) at 0.65%. From the production side, the contribution of electric-based vehicles to total national production also shows a positive trend, achieving 11.1% in 2025. According to him, this achievement will continue to increase in 2026 as several new manufacturers begin operations following the electric vehicle incentive programme for completely built-up (CBU) conditions. Furthermore, the strengthening of the national electric vehicle industry is also supported by an increasingly integrated ecosystem, from upstream to downstream industries. Indonesia, he said, already has an electric vehicle battery supply chain that covers refining, battery cell production, to recycling.