Opening of VKTR Electric Bus Facility: A Momentum for the National Automotive Industry

JAKARTA – The opening of the VKTR electric bus assembly facility in Magelang, Central Java, is seen as an important momentum for the national automotive industry. However, industry players warn that this step must be followed by strengthening the ecosystem to avoid it becoming merely a symbol of industrialisation. President Director of TMI, who was also involved in conceptualising the national car project I2C, Harsusanto, described the presence of this commercial electric vehicle factory as a strategic move in building the foundation for an industry based on environmentally friendly technology in Indonesia. According to him, the initiative also signals an acceleration of the transition to clean energy. However, the sustainability of the electric vehicle industry remains highly dependent on the readiness of the supply chain, domestic component levels (TKDN), and consistent demand from the domestic market. He assessed that without strong ecosystem support, from component industries and batteries to certainty of product absorption by the government and transport operators, electric vehicle development could potentially not run optimally. “This initiative reflects the government’s commitment to promoting self-reliance in the domestic automotive and transportation industry,” he said. Harsusanto revealed that he had directly discussed with VKTR regarding the direction of electric vehicle development. Nevertheless, he emphasised that future challenges are not only in production but also in ensuring the effective utilisation of electric vehicles in the field. This includes readiness of charging infrastructure, operator business models, and investment sustainability. Previously, President Prabowo Subianto, during the inauguration, encouraged the use of domestically produced electric vehicles by local governments and state institutions. This push is deemed crucial for creating initial demand, as well as serving as a real test of whether the national electric vehicle industry can compete and survive in the long term.