Seven EV Manufacturers Commit to Building Factories in Indonesia with Rp 15.4 Trillion Investment
The electric vehicle (EV) industry continues to grow in Indonesia. Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani has revealed an increase in EV manufacturers establishing factories in the country.
Rosan disclosed that from 2024 to March 2025, seven EV manufacturers have committed to relocating their investments to Indonesia. Several have already commenced construction of production facilities.
The seven EV manufacturers are BYD, Citroen, AION, Maxus, Geely, VinFast and VW. The total investment value reaches Rp 15.4 trillion for planned EV car production with a capacity of 281,000 units per year.
Rosan expressed optimism that EV production in Indonesia will continue to increase, with projections reaching 2.5 million units per year by 2030.
According to Rosan, Indonesia is an attractive destination for EV investment because it possesses a complete EV industrial chain ecosystem, particularly for batteries.
"It is already the most complete. From nickel mining to nickel matte, nickel sulphate, precursor, cathode, anode, cell battery, battery pack, through to battery recycling — all these investments already exist in Indonesia. So the whole ecosystem is already here," Rosan explained at the Kumparan New Energy Vehicle Summit 2025 on Tuesday (6 May).
Rosan added that the government will continue to push for higher Local Content Requirement (TKDN) levels. The CEO of the Investment Management Agency (BPI) Danantara said the government is prepared to provide additional incentives for companies with higher TKDN.
"Of course we will provide greater incentives if they achieve higher TKDN. So we have changed the concept — with higher TKDN, greater incentives will be given. Going forward, this will be a more positive approach regarding TKDN," Rosan added.
As part of the EV ecosystem, the government is also encouraging the rapid expansion of charging stations. The government has revised regulations to attract third parties and the private sector to build charging stations.
"So that charging station growth can spread rapidly across Indonesia. Because if there are EV batteries but charging infrastructure is still insufficient, it will naturally reduce interest in future adoption," Rosan said.
Rosan highlighted that overall, the automotive industry makes a significant contribution to investment realisation. Over four years from 2020 to 2024 alone, investment from the automotive industry reached Rp 157 trillion.
Previously, Minister of Industry Agus Gumiwang Kartasasmita stated that the government would support the development of the automotive industry, including the new energy vehicle sector, which will continue to grow in line with the transition towards clean energy. Examples include EVs, hydrogen and biofuel.
"We believe the development of this technology will accelerate Indonesia's transition towards a green economy. The government welcomes all technologies that are environmentally friendly," said Agus.
Agus also highlighted the rapid development of the EV industry in Indonesia. Last year, the electric vehicle population increased by 78 per cent to 207,000 units.
Agus disclosed that Indonesia currently has seven electric bus manufacturers with a capacity of 3,100 units per year and nine electric car manufacturers with a capacity of 70,060 units per year. Additionally, there are 63 electric motorcycle manufacturers with a capacity of 2.28 million units per year.
"In the context of electric vehicle development, the government does not merely want Indonesia to be a market. We are striving for Indonesia to become a production base for electric vehicles, at the very least within the ASEAN region," Agus concluded.
Rosan disclosed that from 2024 to March 2025, seven EV manufacturers have committed to relocating their investments to Indonesia. Several have already commenced construction of production facilities.
The seven EV manufacturers are BYD, Citroen, AION, Maxus, Geely, VinFast and VW. The total investment value reaches Rp 15.4 trillion for planned EV car production with a capacity of 281,000 units per year.
Rosan expressed optimism that EV production in Indonesia will continue to increase, with projections reaching 2.5 million units per year by 2030.
According to Rosan, Indonesia is an attractive destination for EV investment because it possesses a complete EV industrial chain ecosystem, particularly for batteries.
"It is already the most complete. From nickel mining to nickel matte, nickel sulphate, precursor, cathode, anode, cell battery, battery pack, through to battery recycling — all these investments already exist in Indonesia. So the whole ecosystem is already here," Rosan explained at the Kumparan New Energy Vehicle Summit 2025 on Tuesday (6 May).
Rosan added that the government will continue to push for higher Local Content Requirement (TKDN) levels. The CEO of the Investment Management Agency (BPI) Danantara said the government is prepared to provide additional incentives for companies with higher TKDN.
"Of course we will provide greater incentives if they achieve higher TKDN. So we have changed the concept — with higher TKDN, greater incentives will be given. Going forward, this will be a more positive approach regarding TKDN," Rosan added.
As part of the EV ecosystem, the government is also encouraging the rapid expansion of charging stations. The government has revised regulations to attract third parties and the private sector to build charging stations.
"So that charging station growth can spread rapidly across Indonesia. Because if there are EV batteries but charging infrastructure is still insufficient, it will naturally reduce interest in future adoption," Rosan said.
Rosan highlighted that overall, the automotive industry makes a significant contribution to investment realisation. Over four years from 2020 to 2024 alone, investment from the automotive industry reached Rp 157 trillion.
Previously, Minister of Industry Agus Gumiwang Kartasasmita stated that the government would support the development of the automotive industry, including the new energy vehicle sector, which will continue to grow in line with the transition towards clean energy. Examples include EVs, hydrogen and biofuel.
"We believe the development of this technology will accelerate Indonesia's transition towards a green economy. The government welcomes all technologies that are environmentally friendly," said Agus.
Agus also highlighted the rapid development of the EV industry in Indonesia. Last year, the electric vehicle population increased by 78 per cent to 207,000 units.
Agus disclosed that Indonesia currently has seven electric bus manufacturers with a capacity of 3,100 units per year and nine electric car manufacturers with a capacity of 70,060 units per year. Additionally, there are 63 electric motorcycle manufacturers with a capacity of 2.28 million units per year.
"In the context of electric vehicle development, the government does not merely want Indonesia to be a market. We are striving for Indonesia to become a production base for electric vehicles, at the very least within the ASEAN region," Agus concluded.