Ministry of Industry: By 2026, CBU Electric Vehicles Must Begin Local Production

"There is a bank guarantee, so that policy will end and they will then be required to assemble here,” said Kukuh Kumara, General Secretary of Gaikindo, on the sidelines of GIIAS 2025.

Kukuh stated that if the manufacturers do not fulfill their commitment to the government, their money in the bank guarantee will be disbursed to the state.

The local production in question is not for export purposes. Instead, it must be sold domestically.

According to Kukuh, this policy is intended to ensure that producers continue to invest in Indonesia and not rely solely on imports.

Photo : KatadataOTO

It should be noted that a number of manufacturers enjoy the CBU electric car incentives. For example, BYD, which markets the Atto 1 to the Denza D9.

Then there is also VinFast, which has brought in a number of its flagship products, such as the VF3, VF5, and VF7.

Both manufacturers have also built factories, located in Subang Smartpolitan, Subang, West Java.

The BYD factory reportedly cost USD 1 billion in investment, equivalent to Rp 16.2 trillion. It has a production capacity of up to 150,000 electric cars per year.

On the other hand, the VinFast factory stands on a 170-hectare plot of land and involved an investment of USD 200 million, or around Rp 3.2 trillion.