7 Electric Car Manufacturers Invest in Indonesia, Valued at Rp 15.4 Trillion

KatadataOTO – Indonesia remains one of the attractive markets for global electric car manufacturers. The great potential and numerous government incentives are a major draw.

It's not surprising that global car manufacturers are trying to enter the country. They are also reportedly ready to invest large funds to compete optimally.

“From 2024 to March 2025, seven electric vehicle manufacturers have stated their commitment and started construction with a total value of Rp 15.4 trillion. Meanwhile, the planned production capacity for EV cars reaches 281,000 units per year,” said Rosan Roeslani, Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) in Jakarta (06/05).

The seven brands are BYD, Citroen, Aion, Maxus, Geely, Vinfast, and VW.  However, only BYD, Aion, and Vinfast are reportedly committed to building factories in the country.

Photo : BYD

Meanwhile, the rest will utilize the facilities of other companies like PT Handal Indonesia Motor.

Establishing an electric car factory is also claimed to have the potential for large profits. This is because the EV battery ecosystem is considered very complete, as several mining materials like nickel are already available in Indonesia.

“Even battery factories and their recycling facilities are now starting to be built in Indonesia, making the ecosystem more complete,” he added.

Not only that, he also emphasized that the government is planning to add incentives for companies that already have a high Local Content Level (TKDN). Thus, it is hoped that investors will compete to increase the local content in their products.

“So, we are changing the concept so that the higher the TKDN, the higher the incentive. We will focus on this policy,” added Rosan Roeslani.

The Ministry of Industry will also make it easier for investors to obtain TKDN certification.

“This TKDN reform will have a major impact on the business and investment climate,” said Agus Gumiwang Kartasasmita, Minister of Industry, at the launch of the Polytron G3 electric car in Jakarta, Tuesday (06/05).

Photo : BYD

Agus emphasized that the decision was made to create a more supportive investment climate and to facilitate business activities in the country.

This is believed to ease the burden on producers who want to register the TKDN for their products.

“In the future, the calculation process will be easier, faster, and the cost of TKDN certification will be much cheaper,” he concluded.