Indonesia targets domestic electric vehicle ecosystem development

Indonesia is pursuing the development of a domestic electric vehicle (EV) ecosystem to leverage its nickel reserves and reduce fuel imports. President Prabowo Subianto has signaled a push for mass production of home-grown electric cars by 2028 and has announced significant incentives for the production of one million domestic electric motorcycles.

Experts from the Institut Teknologi Bandung (ITB) suggest that successful national production could provide multi-layered benefits, including strengthened energy sovereignty, reduced foreign exchange expenditure on fuel, and the transformation of nickel from a raw export into a high-value battery ecosystem. As of April 2026, the EV population in Indonesia reached 468,231 units, with electric motorcycles currently outnumbering electric cars.

However, analysts caution that the success of this initiative depends on whether the government can move beyond merely creating a consumer market. To avoid becoming just a destination for imported or locally assembled vehicles, experts suggest that Indonesia must implement stricter local-content rules and create stronger links between nickel processing, battery manufacturing, and vehicle assembly. A new EV stimulus package is expected to be announced shortly to define the rules for local producers and battery types.