Antara News·Indonesia·Thursday, October 29, 2026 at 10:41 AM UTC

Indonesia eyes 60 percent domestic content for EV sector in 2027

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Ahmad Muzdaffar Fauzan, Yashinta Difa

Jakarta (ANTARA) - Indonesia is confident its electric vehicle (EV) industry can meet the 60 percent domestic component requirement (TKDN) by 2027, Industry Minister Muhammad Sarmuji said on Thursday.

Sarmuji said meeting the requirement should not pose significant challenges as long as manufacturers carry out their production activities in Indonesia and use domestically produced components.

“I am confident that they are ready. The essence of the local content requirement is, after all, the use of domestic products. If the industry’s manufacturing takes place in Indonesia, there shouldn't be any issues,” he said.

Under the national EV roadmap, the minimum local content requirement is set to rise from 40 percent in 2026 to 60 percent for the 2027–2029 period, before reaching 80 percent in 2030.

Sarmuji said the government would continue to encourage technology transfer and monitor compliance to protect domestic industrial interests.

“There is no need to worry; we will always push for the prioritization of domestic products. We will certainly keep the local content requirements under control,” he added.

Sarmuji also addressed the impact of the rupiah’s depreciation against the US dollar on Indonesia’s industrial sector, noting that the effects varied depending on companies’ business models.

Export-oriented businesses can benefit from a stronger dollar because their foreign-currency earnings translate into more rupiah. However, manufacturers that depend heavily on imported raw materials face higher production costs.

The minister urged companies to strengthen risk management and plan ahead to mitigate the effects of currency fluctuations.

“Industries must have mitigation measures in place. They also need to make forecasts and adapt accordingly,” he said.

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