AHY Urges EV Industry to Boost Local Component Levels

TEMPO.CO, Jakarta -Coordinating Minister for Maritime Affairs and Investment Agus Harimurti Yudhoyono stated that the production of electric vehicles (EVs) in Indonesia must begin by raising domestic component levels. He believes that Indonesia is fully capable of following in the footsteps of neighboring countries that have already advanced their respective electric vehicle industries.

"Domestic component levels need to increase and dominate. Eventually, it can truly be 100 percent made in Indonesia," he said after attending Grab's Green Step Movement for Indonesia event at Taman Mini Indonesia Indah, Jakarta, on Monday, June 29, 2026.

AHY mentioned that domestic technological development will not lag behind since Indonesia possesses highly capable engineers. Progress can be achieved through joint research and production schemes with large corporations or other nations to cultivate the EV sector in Indonesia.

He acknowledged that the government needs to foster a robust ecosystem, including implementing supportive policies to drive industrial growth and vehicle electrification. Various incentives must also be provided to facilitate the industry's expansion.

"However, the President frequently emphasizes that we must have a strong determination to establish a national automotive industry, starting with an electric-based automotive sector," he said.

AHY pointed to the rapid progress of China's electric vehicle industry, which currently dominates the global market. However, he noted that their journey started with imperfect products and required extensive research and refinement. "This is an inevitability for any growing industry," he added.

As of now, Indonesia does not yet possess any homegrown electric vehicle brands. However, the government plans to produce a national car under the brand I2C (Indigenous Indonesian Car), which is being developed by PT Teknologi Militer Indonesia.

Read: National Car and EV Subsidies Currently Under Discussion

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