Ministry of Industry Says EV Producers Want to Enter Indonesia Due to US Import Tariffs

KatadataOTO – Import tariffs imposed by the United States on several countries have made a number of EV manufacturers interested in investing in Indonesia. Several manufacturers from various countries have reportedly contacted the Ministry of Industry regarding this matter.

This is certainly positive news, considering the automotive industry in the country is currently under pressure.

"There are several electric vehicle and battery manufacturers who have started discussions with us. The majority are from China, and there are some from Europe as well," said Mahardi Tunggul Wicaksono, Director of Maritime Industry, Transportation Equipment, and Defense Equipment (IMATAP) at the Ministry of Industry, as reported by Antara (19/05).

However, he could not yet disclose the investment value that these companies will pour in as it is still in the discussion stage. However, they are reportedly looking to continue and relocate their investments to the country.

Photo : Special

"In principle, it's still an initial exploration because they have electric vehicle technology. The companies are studying how to relocate and continue their investments in Indonesia," he said.

He also added that the number of electric car manufacturers already operating in Indonesia has reached nine companies. Meanwhile, for electric buses, it has reached seven companies.

Two- and three-wheeled electric vehicle factories are the largest producers, with 63 companies.

The production capacity for each vehicle segment also differs. For electric cars, it is currently at 70,600 units per year.

Meanwhile, electric buses are at 3,100 units per year. As for two- and three-wheeled electric motorcycles, it is 2.28 million units.

Photo : Carscoops

Interestingly, the government also plans to change the regulations regarding the Local Content Requirement (TKDN) to make it easier. Thus, it is hoped that the investment climate in the country can be stable and facilitate business activities in the country.

The burden on manufacturers who want to register their products' TKDN will also be lighter than before.

Unfortunately, as of the writing of this news, there is no official information on when the policy will be tested and issued by the government.