The Investment and Downstream Minister and Head of the BKPM, Rosan Roeslani, has confirmed that the government will grant greater incentives to electric vehicle (EV) manufacturers with high domestic components (TKDN). Companies will receive higher incentives for TKDN content, with incentives increasing with the TKDN content. From March 2020 to March 2025, seven companies have committed to investing in electric vehicle production facilities in Indonesia, including BYD, Citroën, AION, Maxus, Geely, FinVast, and Volkswagen. With a total investment value of IDR 15.4 trillion, these companies have initiated construction, aiming for an annual production capacity of 281,000 electric vehicles.
Investment in this sector will support the fulfilment of future demand for electric vehicles as demand continues to increase. By 2024, according to data from the Indonesian Automotive Industry Association (Gaikindo), sales of battery-based electric vehicles are projected to increase by 151.4%. From 2019 to 2024, the average annual sales growth rate was 331%. In 2030, it is predicted that electric vehicle production will reach 2.5 million units per year.
