Ministry of Industry Strengthens Early Adopter Role to Boost EV Market

The Ministry of Industry (Kemenperin) is strengthening the role of early adopters, or initial users, to encourage 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 sending a strong market signal by positioning the government as an early adopter for domestically produced electric vehicles,” said Minister of Industry (Menperin) Agus Gumiwang Kartasasmita in a statement in Jakarta on Wednesday. According to Kemenperin data, the battery-based electric motor vehicle industry market in Indonesia has experienced exponential growth, with a Compound Annual Growth Rate (CAGR) of more than 140 percent over the last five years. Additionally, the market share of electric-based vehicles continues to rise. In 2025, the electric vehicle market share reached 21.71 percent, comprising battery electric vehicles (BEV) at 12.93 percent, hybrid electric vehicles (HEV) at 8.13 percent, and plug-in hybrid electric vehicles (PHEV) at 0.65 percent. From the production side, the contribution of electric-based vehicles to total national production also shows a positive trend, achieving 11.1 percent in 2025. This achievement, according to him, will continue to increase in 2026 as several new manufacturers begin operations under 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 includes refining processes, battery cell production, and recycling. “The government is also continuing to strengthen regulations to provide business certainty for industry players while encouraging the adoption of electric vehicles in society,” he stated. According to him, collaboration between the government and the private sector is a key factor in accelerating the development of this industry. Several global and national producers have demonstrated their commitment to developing electric vehicles in Indonesia, including Hyundai Motor Manufacturing Indonesia, SGMW Motors Indonesia, and Indonesia Battery Industry. The presence of these industry players is tangible evidence that Indonesia is increasingly trusted as a production base for electric vehicles in the region. In line with this policy direction, the government is also preparing the establishment of a company to produce a national electric car as part of strengthening the electric vehicle ecosystem. This step is expected to expand market segments while accelerating the realisation of the target for mass production of national electric vehicles, which is targeted to arrive in 2028.