What changed
2026-07-29 08:48 UTC → 2026-07-30 12:04 UTC ·
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Indonesia auto sector expansion growth and new EV supply chain incentives
In July 2026, 2026 saw Chinese automakers accelerated rapidly scale local manufacturing in Indonesia, with Jaecoo leading production and other brands such as – Jaecoo, Wuling, Geely and Chery adding collectively added thousands of units. Vehicle units, while vehicle exports rose 7.7% year‑on‑year, reaching 7.7 % to over 250,000 units, while established 250 000. Japanese firms like such as Toyota and Mitsubishi posted also recorded strong export growth. Mazda reaffirmed its market approach, gains, and GAC unveiled introduced an updated Indonesia‑specific Aion UT electric SUV tailored for Indonesian buyers. Later in the month, the focus shifted to SUV. The month’s second phase centred on the electric‑vehicle EV battery ecosystem. chain. Indonesia moved ahead with advanced a US$2 billion High‑Pressure Acid Leaching high‑pressure acid leaching (HPAL) plant in Morowali to boost increase domestic nickel output for EV batteries, a project expected to reinforce the supply chain and stimulate local economies. Industry groups, meanwhile, called on industry groups pressed the government for clear clearer EV incentive policies, warning that policy uncertainty was delaying production, pricing incentives. In response, the government unveiled a revised EV‑incentive framework tied to the 2027 macro‑economic plan. The scheme prioritises cars produced by national brands, offers targeted support for domestic manufacturers, and consumer decisions. Together, these developments illustrate Indonesia’s broader strategy of expanding links incentives to a planned 412‑hectare industrial zone in Subang, West Java, aimed at national‑brand vehicle manufacturing—particularly with Chinese players—while simultaneously building development. Finance and economic ministers confirmed that broader subsidies will shift toward strategic local producers, while President Prabowo Subianto is expected to launch the national‑vehicle project soon. These steps underline Indonesia’s coordinated push to expand auto manufacturing, secure a domestic battery supply chain supply, and seeking now shape policy certainty to support the growing electric‑vehicle market. reinforce locally‑built electric vehicles.