Indonesian Political, Business & Finance News

Prabowo Targets Mass Production of Electric Sedans by 2028, Leaving Behind Fossil Fuels

| | Source: MEDIA_INDONESIA Translated from Indonesian | Energy
Prabowo Targets Mass Production of Electric Sedans by 2028, Leaving Behind Fossil Fuels
Image: MEDIA_INDONESIA

President Prabowo Subianto has stated that the direction of the national energy policy is towards electrification, amid global uncertainties and the threat of an energy crisis. He conveyed this during the inauguration of the electric commercial vehicle assembly plant owned by PT VKTR Teknologi Mobilitas Tbk in Magelang on Thursday (9/4).

According to Prabowo, Indonesia possesses abundant energy resources, thus remaining optimistic in facing global dynamics. However, he reminded of the importance of vigilance alongside accelerating the energy transition.

“In the energy sector, we are very rich, with abundant sources. So amid a world in crisis, where many countries are anxious, we must be vigilant, but we are optimistic. We will face challenges in the coming months,” he said, as witnessed from the YouTube of the Presidential Secretariat, on Thursday (9/4).

Despite having large reserves, Prabowo emphasised that energy use must be more efficient and shift to cleaner sources. Electrification is one of the main strategies to reduce dependence on fossil fuels.

“Whatever it takes, we must now move towards clean energy, renewable energy,” he stated.

He described the industrialisation of electric vehicles as an important milestone in the national energy transformation. The initiative by VKTR is seen as part of a major change towards the use of electricity in the transportation sector.

Prabowo also highlighted the growing capabilities of the domestic industry, including the production of electric buses and trucks. The government even targets mass production of electric sedan-type cars in 2028.

“I hope that by 2028 we will produce electric sedans on a large scale. So now there are already electric buses, electric trucks, and their capabilities are quite substantial, something to be proud of,” he said.

He revealed that the company’s production capacity can reach 10,000 electric bus units, with the domestic component level (TKDN) currently at 40% and targeted to increase to 80% in the coming years.

Support from local governments and institutions is also a focus. Prabowo mentioned that several regions have begun ordering electric buses, and urged other regions to follow suit.

“Across the nation, the Cabinet Secretary notes governors who do not order domestic products, buses and trucks and so on. The TNI is also instructed to buy domestically,” he said.

Furthermore, Prabowo hopes that the national electric vehicle industry can produce major players capable of competing globally, like automotive manufacturers in Japan and South Korea.

“I hope that in a few years we will see VKTR as one of Indonesia’s champions,” he remarked.

He also touched on his personal connection to Magelang, including the naming of vehicle series inspired by Indonesian mountains, such as Tidar and Lokon.

PT VKTR Teknologi Mobilitas Tbk is a company that originated from PT Bakrie Steel Industries, founded in 2007, before shifting its business focus to mobility electrification in 2022.

VKTR also listed on the Indonesia Stock Exchange in 2023 as part of business expansion and strengthening transparency.

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