Source: Kompas.com | May 6, 2025

Minister of Investment and Downstream/Head of BKPM Rosan Roeslani ensured that the government will provide greater incentives to electric vehicle (EV) manufacturers that have a high domestic component level (TKDN).

He said that the higher the TKDN content of the electric vehicle, the greater the incentives the government will provide to the company.

“Of course we will provide greater incentives if they carry out TKDN. So we will change this concept with a higher TKDN, we will provide greater incentives,” said Rosan at the New Energy Vehicle Summit 2025 at MGP Space, Jakarta, Tuesday (6/5/2025).

He revealed that throughout March 2020 to March 2025 there have been 7 companies that have committed to investing in Indonesia to build electric vehicle production facilities. Consisting of BYD, Citroen, AION, Maxus, Geely, FinVast, and Volkswagen (VW).

Rosan said, the companies have started construction with a total investment value of IDR 15.4 trillion to produce electric cars with a capacity of 281,000 per year.

“So that’s what has started to state its commitment and has started running (its investment),” he said.

According to him, the demand for electric vehicles will continue to increase. The investment will also support the fulfillment of the need for electric vehicles in the future.

Based on data from the Association of Indonesian Automotive Industries (Gaikindo), sales of battery-based electric vehicles in 2024 grew by 151.4 percent.

Meanwhile, the average annual sales growth throughout 2019-2024 reached 331 percent. “We see that the production of electric vehicles will continue to increase, and in 2030 we predict that the production of electric vehicles can reach 2.5 million units per year,” said Rosan.