Indonesia EV localization and transit infrastructure trends

The Indonesian automotive and transportation sectors are seeing significant developments in infrastructure and manufacturing localization. On the consumer side, there is growing interest in motorcycle customization and a secondary market for used electric motorcycles from brands such as Uwinfly, Yadea, and United.

In the manufacturing sector, PT Dharma Polimetal Tbk (DRMA) is preparing to increase the use of domestic components to align with government roadmaps for Local Content Requirements (TKDN). The government has set specific targets for electric vehicle localization: a minimum of 40 percent in 2026, increasing to 60 percent during 2027–2028, and reaching 80 percent by 2030. DRMA notes that this localization strategy is intended to reduce logistics times, decrease import dependence, and boost local employment.

DRMA Director Darmawan Widjaja has emphasized that higher TKDN levels are essential for strengthening the local industry and driving job creation. The company is actively pushing for component localization, particularly for high-volume products, to gain logistical advantages and reduce reliance on imported goods.

Simultaneously, public transportation connectivity has seen a major boost. PT LRT Jakarta reported a 166 percent surge in daily ridership following the inauguration of the Kelapa Gading–Manggarai route by President Prabowo Subianto. Between September 16 and September 23, 2026, the service averaged 11,300 passengers per day, up from 4,245 in August. The new route, which utilizes a flat fare of Rp5,000, connects Jakarta Utara, Jakarta Timur, and Jakarta Selatan.