Indonesia’s Minister of Industry, Agus Gumiwang Kartasasmita, has introduced the “green mobility” policy framework—an initiative aimed at integrating environmentally friendly technologies, energy efficiency, and sustainability into the country’s automotive sector. This forward-looking approach is designed to keep pace with rapid technological disruption, particularly as electric, hybrid, and hydrogen fuel cell vehicles begin entering the domestic market. The government has committed to supporting both new and long-standing investors through incentives for green vehicle production, including Low Cost Green Cars (LCGC), biofuels, electric vehicles, hybrids, and future hydrogen-based transport.
The Minister emphasized that Indonesia’s automotive market still holds strong growth potential, citing the country’s low vehicle ownership rate compared to neighboring ASEAN countries. With just 99 cars per 1,000 people—significantly below Malaysia and Thailand—Indonesia offers ample room for domestic automotive expansion. The green mobility policy also aligns with the government’s broader goal of achieving Net Zero Emissions (NZE) in the manufacturing sector by 2050, a target that the Ministry of Industry aims to reach a decade ahead of the national roadmap. The initiative reflects Indonesia’s dual commitment to economic competitiveness and environmental responsibility in the global automotive landscape.
