Many EVs with High Local Content Value are believed to bring positive impact.

KatadataOTO – Currently, many electric motorcycles and cars are on Indonesian roads. Especially those from foreign countries, such as China and Japan.

This has prompted the government to boost the TKDN (Local Component Level) value of products marketed in the country.

Because this is considered to bring many positive impacts. Especially for the domestic automotive industry.

“With a higher TKDN value in electric vehicle products, we can certainly reduce our dependence on imported goods,” said Agus Gumiwang Kartasasmita, Minister of Industry, at the launch of the Polytron G3 electric car in Jakarta some time ago.

Photo : BYD

Indeed, if you look closely, there are still many electric vehicle (EV) components purchased from other countries. This is certainly considered less profitable for industry players.

Moreover, Indonesia already has many automotive component manufacturers who can be invited to collaborate. Thus, it can stimulate the country's economy.

Therefore, the Minister of Industry wants the TKDN value of cars or electric motorcycles on the market to be gradually increased.

“In addition, it (can) optimize the potential of the manufacturing industry in Indonesia,” Agus Gumiwang continued.

On the other hand, the government has also prepared a number of stimuli for manufacturers who have EV products with high TKDN values.

For example, providing additional incentives if manufacturers like BYD, Wuling, Chery, Toyota, and others have environmentally friendly four-wheeled vehicles with a sufficiently high TKDN value.

“So we will change this concept; with a higher TKDN, we will provide even greater incentives,” said Rosan Roeslani, Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) on a separate occasion.

Furthermore, Rosan revealed that from March 2024 to March 2025, seven EV manufacturers have committed to investing their money in the country.

Photo : KatadataOTO

These include BYD, Aion, Citroen, Maxus, Geely, VinFast, and VW (Volkswagen). If combined, the investment value reaches Rp 15.4 trillion for a planned EV production capacity of 281 thousand units per year

“So we are taking a more positive approach going forward regarding this TKDN (value),” Rosan said.

Rosan has also set a target for electric car production in Indonesia to increase to 2.5 million units per year.

“Of course, we will provide even greater incentives if they implement TKDN,” Rosan concluded.