Indonesia plans EV incentives based on local content levels

The Indonesian government is preparing an electric vehicle (EV) incentive scheme based on the level of domestic component content (TKDN). Minister of Industry Agus Gumiwang Kartasasmita stated that the Ministry of Industry is studying how to provide incentives that reward higher local content to strengthen the national EV ecosystem and domestic industry.

This policy direction follows guidance from Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan. The goal is to ensure that incentives do not merely drive vehicle sales but also increase local production capacity and investment. The Ministry of Industry will coordinate with the Ministry of Finance to design the program.

In a related development within the automotive sector, the Gaikindo Indonesia International Auto Show (GIIAS) continues its 2026 series. Following events in Tangerang and Surabaya, GIIAS Bandung is scheduled for September 9–13, 2026. West Java remains a critical automotive hub, contributing 15.1% of national vehicle sales as of April 2026 and hosting major manufacturing centers in Bekasi, Karawang, Subang, and Purwakarta.