Indonesia targets 60 per cent local content for EVs in 2027
The national EV roadmap raises the minimum domestic component requirement from 40 per cent in 2026 to 80 per cent in 2030.
Indonesia’s electric vehicle industry should be able to meet a 60 per cent domestic component requirement in 2027, Industry Minister Muhammad Sarmuji said, expressing confidence in manufacturers’ readiness.
The national EV roadmap sets a minimum local content level of 40 per cent in 2026, followed by 60 per cent during 2027–2029 and 80 per cent in 2030. The requirement is known as TKDN.
Sarmuji said compliance should not present major difficulties if companies manufacture in Indonesia and use locally made components. He said the government would keep encouraging technology transfer and checking compliance to safeguard domestic industrial interests.
Separately, the minister said the impact of the rupiah’s weakening against the US dollar depended on how companies operated. Exporters could benefit as earnings in foreign currencies were worth more in rupiah, while producers reliant on imported raw materials faced increased production costs.
He urged businesses to improve risk management, prepare forecasts and adjust their operations to limit the effects of currency movements.
