Tag: TKDN

  • Wuling puts five EVs at 60% local content as INDEF warns of box-ticking

    Wuling puts five EVs at 60% local content as INDEF warns of box-ticking

    Top image: Wuling BinguoEV in Bandung. Photo: Mocarey15, CC0, via Wikimedia Commons

    Wuling Motors says five of its Indonesian-built electric cars now meet a 60% local content (TKDN) rating, putting the brand ahead of the government’s plan to make 60% the bar for EV incentives from 2027. The announcement came in the same week that economists at the Institute for Development of Economics and Finance (INDEF) questioned whether the higher threshold will build a real supplier industry or simply become a paperwork exercise.

    Which Wuling models qualify

    According to Kompas.com, the five models are the New BinguoEV hatchback, the larger New Cloud EV, the Darion EV MPV, the Eksion EV SUV and the compact Aira ev city car. Wuling said the rating had risen from 40% to 60%, largely because it now assembles battery packs in Indonesia, sourcing pack packaging, battery housings and wiring harnesses locally.

    The cars are built at Wuling’s plant in Cikarang, West Java, which handles body welding, painting, final assembly and quality checks. Local suppliers named by the company include PT Asahimas Flat Glass, tyre maker PT Gajah Tunggal and PT GS Battery. Vice President Arif Pramadana said the milestone would push Wuling to keep developing local production, including battery pack assembly.

    Wuling joins a growing list of brands positioning for the new rule. Hyundai said this week that its Indonesian-built Neira seven-seater will clear 60%, while BYD has said its Subang-built cars already exceed 40% and target 60% for 2027.

    INDEF: percentages are not enough

    INDEF economist M Rizal Taufikurahman argued in a statement reported by Bisnis.com that the success of the policy should not be judged by the local-content percentage alone, but by whether it delivers domestic value added, technology transfer and stronger component suppliers.

    “If the increase relies on assembly and bodywork while strategic components remain imported, industrial deepening will be limited,” Rizal said (translated from Indonesian).

    He also warned that raising TKDN without demand certainty and ready suppliers could push up production costs and slow EV adoption, and that without strict oversight the rule risks becoming administrative compliance with limited industrial benefit. Local suppliers, he said, need financing for machinery, certification and quality support.

    The legacy of the import window

    Rizal’s wider point is about timing. Under the 2024–2025 incentive scheme, fully imported (CBU) EVs paid 0% import duty instead of the normal 50%, and 0% luxury sales tax (PPnBM) instead of 15%. In return, brands had to build the same number of cars locally, backed by bank guarantees, with that production due in 2026–2027 – the same period in which the 60% threshold arrives. The CBU window closed on 31 December 2025, but imported stock and the market share it built are still in play, so local producers face a stiffer climb.

    The market itself is growing fast. Citing Gaikindo figures, INDEF noted battery EV wholesales reached 117,218 units in January–September 2026, about 17.26% of all car sales and already above the 103,931 sold in the whole of 2025 (see our January–September sales report). INDEF also flagged commercial vehicles: Indonesia imported 15,070 complete trucks from China in 2025, worth US$688.6 million, many with bodywork already fitted, leaving little work for local coachbuilders.

    What it means for buyers

    For now, little changes at the showroom. The 60% rule is due from 2027 (see our explainer on the new battery-pack requirement), and models that already meet it, such as the five Wuling EVs, look best placed to keep any VAT relief once it applies. Buyers considering a model that is still imported or below the threshold may want to ask dealers how the brand plans to qualify, as that could affect future pricing. Wuling’s full line-up is in our EV directory.

    Sources: Kompas.com – Lima Mobil Listrik Wuling Sudah Kantongi TKDN 60 Persen (4 Nov 2026); Bisnis.com – INDEF Soroti Konsistensi Kebijakan Impor dan TKDN Kendaraan Listrik (6 Nov 2026)

  • Hyundai says Indonesian-built Neira seven-seat EV will clear 60% TKDN

    Hyundai says Indonesian-built Neira seven-seat EV will clear 60% TKDN

    Top image: a Hyundai Ioniq 5 on display at GIIAS in Surabaya. Photo: Alex Neman, CC BY-SA 4.0, via Wikimedia Commons

    Hyundai Motors Indonesia (HMID) says its forthcoming Neira, a three-row, seven-seat electric SUV that will be built at its Cikarang plant, will comfortably exceed the 60% local-content (TKDN) threshold that battery EVs must meet from 2027. The company gave the assurance at a media briefing in Jakarta on Thursday (5 November), ahead of the car’s public introduction at Gaikindo’s Jakarta auto show later this month.

    Battery plant underpins the TKDN claim

    HMID chief operating officer Fransiscus Soerjopranoto credited Hyundai’s existing battery manufacturing facility in Karawang, West Java, and final assembly at the Hyundai Motor Manufacturing Indonesia (HMMI) plant in Cikarang for the local-content level, according to Antara. Battery packs from Karawang would also be assembled into the car in Cikarang, he said.

    “Neira’s TKDN is definitely above 60 per cent, because the battery plant itself is already in Karawang, so it’s just a matter of utilising it.”
    — Fransiscus Soerjopranoto, HMID, to Antara (translated from Indonesian)

    The timing matters. As we reported this week, the government is tightening the rules so that battery EVs need 60% local content, including locally built battery packs, from 2027. Antara notes that the roadmap in Presidential Regulation No. 79 of 2023 sets 60% for 2027–2029, rising to 80% from 2030. Brands that rely on imported packs or imported cars will need to localise further to keep qualifying for incentives, while manufacturers with local cell or pack production start with an advantage.

    Filling a half-empty factory

    In a separate Antara report, Fransiscus said the HMMI plant has an annual capacity of around 150,000 units but is currently running at about half of that. Hyundai hopes the Neira, together with the Kia Carens it also builds there, will push the factory towards full utilisation. Production will serve the domestic market first; exports are possible but are not the immediate priority, he said.

    What Hyundai has revealed so far

    The Neira, whose name refers to Banda Neira in Maluku, is aimed squarely at Indonesia’s appetite for seven-seaters. Kontan lists four selling points Hyundai highlighted:

    • 200 mm of ground clearance, which Hyundai says suits Indonesia’s uneven roads;
    • Bluelink connected-car technology linking the car to the driver’s smartphone;
    • Blind-Spot Collision-Avoidance Assist, a feature Hyundai says scored well in its customer car-clinic research;
    • a roomy three-row cabin with easy access from the second row to the third.

    Hyundai has not yet published a price, battery size or range. Jawa Pos reports that HMID has not disclosed pricing and that pre-bookings will open during the show. Antara says full details of prices, variants and the ordering process will be announced there, and that several variants, from an entry trim to a top specification, are planned. Kontan reports the exhibition opens on 20 November and that visitors will be able to inspect the car at a dedicated “Neira Corner”. Antara refers to the show by its new name, Gaikindo Auto Week (GAW) 2026, formerly GJAW; Kontan still uses GJAW.

    The Neira joins a growing list of debuts planned for the event, alongside the GAC, LEPAS and BAW models we covered in October. Hyundai’s current electric range in Indonesia includes the Ioniq 5 and Ioniq 9, according to Jawa Pos; see our Hyundai directory entry for the wider line-up.

    What it means for buyers

    A locally built seven-seat EV from a mainstream brand would compete in one of the market’s most important segments, where families currently have relatively few electric options. Clearing the 60% TKDN bar should help keep the Neira eligible for whatever incentives apply from 2027, which in turn could make its pricing more competitive than imported rivals. Until Hyundai confirms the price, battery and range at the show, though, buyers should treat it as a model to watch rather than one to commit to; pre-booking terms are worth reading carefully before paying any deposit.

    Sources: Antara: Hyundai pastikan Neira penuhi TKDN di atas 60 persen untuk aturan 2027; Antara: Hyundai optimalkan utilisasi pabrik lewat produksi Neira dan Carens; Kontan: Hyundai siapkan mobil listrik 7 penumpang NEIRA, ini empat keunggulannya; Jawa Pos: Hyundai siapkan NEIRA, SUV listrik 7 penumpang, buka pre-booking di GAW 2026

  • Bahlil says nickel-to-cell battery chain is complete, eyes curbs on new smelters

    Bahlil says nickel-to-cell battery chain is complete, eyes curbs on new smelters

    Top image: NASA/JPL, NASA/METI/AIST/Japan Space Systems and U.S./Japan ASTER Science Team, Public domain, via Wikimedia Commons. NASA satellite view of nickel mining in Southeast Sulawesi.

    Indonesia now has a battery supply chain that runs all the way from nickel mines to finished battery cells, according to Bahlil Lahadalia, the coordinating minister for downstreaming and energy transition, who also serves as energy and mineral resources minister. In the same speech, however, he signalled that the government is reviewing whether new smelters making only semi-finished products should still be allowed, saying most of the industry is still stuck halfway up the value chain.

    Bahlil was speaking on Monday 2 November at the opening of the Minerba Convention and Exhibition (Minerba Convex) 2026 at JIExpo Kemayoran in Jakarta, the same event at which economic council official Septian Hario Seto laid out the 60% local-content target for EVs in 2027.

    “From mine to battery cell”

    According to Antara and JawaPos, Bahlil said Indonesia was one of the countries that had managed to build an integrated car-battery ecosystem stretching from mining to battery cells. He pointed to three battery facilities: a plant in the Indonesia Weda Bay Industrial Park (IWIP) in Central Halmahera, North Maluku; the Hyundai LG Indonesia (HLI) Green Power cell plant in Karawang, West Java, which has been operating since July 2024; and the joint venture between state miner Antam and China’s CATL, which he said President Prabowo Subianto would inaugurate in Karawang this month. IndoEVs reported last week that Prabowo is expected to open the CATL-IBC plant.

    Antara’s Indonesian service also quoted him as saying that the idea of an integrated battery ecosystem had been doubted when it was first presented in 2020, and that the United States now sources precursor and cathode material from Indonesia.

    Export figures: sources differ

    Bahlil used nickel exports to argue that halting raw ore exports had paid off, but the reports give different numbers. JawaPos, carrying Antara copy, says exports grew from US$3.3 billion in 2017 to US$40 billion in 2025, with US$25.96 billion recorded by the Directorate General of Minerals and Coal up to August 2026. Antara’s Indonesian report and Kumparan put the post-ban level at about US$34 billion, compared with US$3.3 billion in 2017–2019, without naming a year. The gap may reflect different years or definitions; the ministry has not clarified it.

    A rethink on smelters

    The more consequential part of the speech may be the warning about where processing has stalled. Bahlil said most downstream output was still at the intermediate stage, around 50–60% of the full value chain, and described the number of smelters as having “boomed”. Antara reported that the government is weighing whether smelters that produce only semi-finished goods should still be built, or should face further regulation.

    “What we need to push is the end product, so that semi-finished raw materials are not all exported abroad.” – Bahlil Lahadalia, quoted by Antara (translated from Indonesian)

    Tri Winarno, director general of minerals and coal, said the next phase should cover intermediate materials and components, including for the battery industry. Bahlil also stressed, as reported by Media Nikel Indonesia, that downstreaming must be “equitable”, with benefits reaching communities around mining areas, not only higher commodity value and state revenue.

    The review builds on the option of a moratorium on new semi-finished nickel smelters that Bahlil raised in October, and comes as some Chinese nickel producers weigh output cuts.

    What it means for buyers

    For drivers, a mine-to-cell chain matters mainly through local content rules. With the TKDN threshold for battery EVs set to rise to 60% next year, carmakers that can buy locally made cells, such as those from HLI or the CATL joint venture, should find it easier to qualify for incentives and keep prices competitive. Whether incentives should favour nickel-based cells over nickel-free LFP (lithium iron phosphate) batteries remains a point of debate. The environmental footprint of the nickel parks, many of which run on captive coal power, is another open question. Hyundai, whose cell plant Bahlil cited, is listed in our EV directory.

    Sources: Antara (English); Antara (Indonesian); Kumparan; JawaPos; Media Nikel Indonesia.

  • EVs must hit 60% local content with locally built battery packs from 2027

    EVs must hit 60% local content with locally built battery packs from 2027

    Top image: Photo: RasyaAbhirama13, CC BY-SA 4.0, via Wikimedia Commons

    Electric cars sold in Indonesia will need at least 60% local content from next year, and their battery packs will have to be assembled in the country, according to Septian Hario Seto, executive secretary of the National Economic Council (DEN). Speaking at the Minerba Convention & Exhibition 2026 at JIExpo in Jakarta on Tuesday, Seto said the bar would rise again later in the decade to a level that forces carmakers to source battery cells locally, CNBC Indonesia reported.

    The comments are the clearest signal yet that the government intends to stick to the higher local-content threshold (TKDN) for battery electric vehicles in 2027, after weeks of debate over incentives, hybrids and nickel-based batteries.

    From 40% to 60%, then 80%

    Under the current rules, a battery EV needs at least 40% local content to qualify for Indonesia’s EV programme. Seto said that figure would step up to 60% next year, together with an obligation to turn imported or local cells into finished battery packs on Indonesian soil.

    He added that the requirement would reach 80% by 2029 – a date he gave with the caveat “if I’m not mistaken”. At that level, the battery cell itself must be produced domestically. “At 80%, the battery cells have to be made in Indonesia,” he said (translated from Indonesian).

    The timetable he described differs slightly from the one presented by the Ministry of Industry. In a September hearing with House Commission VII, cited in the same CNBC Indonesia report, Setia Diarta, director general of metal, machinery, transport equipment and electronics industries (ILMATE), set out a minimum of 40% until 2026, 60% for 2027–2029 and at least 80% from 2030. He said the industry would have to start making battery packs and modules locally so that finished batteries no longer need to be imported, and described the cell as the component that matters most for the TKDN score.

    Industry Minister Muhammad Sarmuji struck a confident note last week. Manufacturers that produce in Indonesia and use domestic components should be able to meet 60% by 2027, he said, according to Antara, adding that the government would push for technology transfer and monitor compliance.

    Why the government wants it

    Seto framed the TKDN path as a way to give investors predictable rules, arguing that Indonesia should avoid the kind of regulatory instability Thailand has experienced. He put national electric car sales last year at about 100,000 units, which he said places Indonesia among the world’s 20 largest EV markets.

    The battery requirement is also tied to Indonesia’s nickel strategy. Setia said downstream processing had already reached nickel sulphate and cobalt sulphate, and that the focus from 2026 to 2030 would shift to cathode and anode materials. Cell production capacity is starting to arrive: President Prabowo is due to open the CATL-IBC battery plant in Karawang, which would give carmakers a local source of cells.

    For brands already assembling locally, the step looks manageable. BYD has said its Subang-built cars already exceed 40% and that it is targeting 60% for 2027, while the ministry has suggested that even models that started life as imports could reach 60% with local batteries. The harder test will be the later move to locally made cells.

    Incentives still unresolved

    The local-content rules arrive while the industry is still waiting for clarity on incentives. Harry Yanto, vice president of operations at Kia Sales Indonesia, told reporters on 28 October that he expects the battery EV market to be flat in 2027 if no new support is introduced, CNN Indonesia reported. “Without attention from the government on this subsidy, prices will certainly be higher,” he said (translated from Indonesian). Kia is widening its line-up with hybrids and possibly plug-in hybrids in response.

    Several new incentive schemes have been discussed this year, including the proposal for bigger incentives for nickel-battery cars, but none had been implemented at the time of CNN Indonesia’s report.

    What it means for buyers

    • More locally assembled models: brands that want to stay in the EV programme will need local battery-pack lines, which favours makers with Indonesian plants such as BYD and Wuling.
    • Possible price pressure: localisation costs money up front, and with incentives still undecided, some brands warn prices could rise. Check our EV directory for current models and prices.
    • Longer term: local battery packs and, later, cells could make servicing and battery replacement easier to arrange in Indonesia.

    Official regulations setting out the 2027 threshold, including the exact start date and transition rules, had not been published at the time of writing.

    Update (5 November 2026): Hyundai says its Indonesian-built Neira seven-seater will clear the new threshold. Read our follow-up.

    Update (6 November 2026): Wuling now says five of its Indonesian-built EVs hold a 60% rating, while economists at INDEF warn the rule must build real suppliers rather than paperwork. Read the follow-up.

    Sources: CNBC Indonesia (3 Nov 2026); Antara News (29 Oct 2026); CNN Indonesia (30 Oct 2026)

  • PEVS 2026 opens as battery EVs reach 16.88% of Indonesia’s car market

    PEVS 2026 opens as battery EVs reach 16.88% of Indonesia’s car market

    Top image: Photo: Irvan Cahyo N, CC BY-SA 4.0, via Wikimedia Commons

    The fifth Periklindo Electric Vehicle Show (PEVS) opened at JIExpo Kemayoran in Central Jakarta on Thursday 29 October, and the government used the occasion to put a number on how quickly electric cars are moving into the mainstream. According to industry ministry data presented at the opening, battery electric vehicles (BEVs) accounted for 16.88% of Indonesia’s four-wheeler market by August 2026, up from about 0.99% in 2022, Liputan6 reported.

    The show, which we previewed last week, runs until Sunday 1 November.

    From under 1% to almost one in six

    The figures were set out in a speech on behalf of the Minister of Industry, read by Setia Diarta, the ministry’s Director General of Metal, Machinery, Transportation Equipment and Electronics Industries (ILMATE). The speech said the increase showed growing public acceptance of electric vehicles, but added that market growth needs to be matched by more domestic production capacity.

    The ministry also put Indonesia’s total electric vehicle population at 541,000 units as of August 2026, a figure that covers two-, three- and four-wheelers as well as commercial and special-purpose vehicles. CNN Indonesia, citing the same national industry data, gave earlier totals of 243,000 units in 2024 and 406,000 in 2025. By our calculation, that means roughly 135,000 electric vehicles were added in the first eight months of 2026, against about 163,000 in the whole of 2025.

    Reports of the opening framed the share figures slightly differently. CNN Indonesia described BEVs as about 16% and hybrids (HEVs) as about 9%, citing data to April 2026, while Liputan6 reported the 16.88% figure as BEVs’ share of the four-wheeler market as of August. Neither outlet published the full underlying dataset, so the numbers are best read as an indication of direction rather than a precise like-for-like comparison.

    Local content rules restated

    The ministry also restated its local-content (TKDN) path for battery electric vehicles under Presidential Regulation 55/2019 (as amended by Regulation 79/2023) and industry ministry rules: a minimum of 40% until the end of 2026, rising to 60% for 2027–2029 and 80% from 2030. Batteries and battery management systems were singled out as priorities for local production. We have covered how carmakers are preparing for the step up, including BYD’s plans for its Subang plant and the role of locally made batteries.

    Who is exhibiting

    Organisers Dyandra Promosindo and Periklindo list nine car brands — BAIC, BYD, Chery, Danza, DFSK, MAB, MG, Polytron and Wuling — and six electric motorbike brands: Alva, AHM (Astra Honda Motor), Indomobil E-Motor, Polytron, Selis and United, according to Medcom. There are also air-mobility exhibitors showing cargo drones and eVTOL aircraft, and electric boat makers.

    Periklindo chairman Moeldoko, who formally opened the show, repeated his argument that EVs can cut household running costs and the fuel-subsidy bill. Bappenas head Rachmat Pambudy also attended. Speaking to KatadataOTO, Moeldoko said:

    “We (Indonesia) must not just be spectators; we must be a main player in responding to EV developments in Indonesia.” (translated from Indonesian)

    Moeldoko’s recent comments about eventually ending EVs’ exemption from Jakarta’s odd-even rule are covered in our earlier report.

    What it means for buyers

    For anyone shopping for an EV, the show is mainly a chance to compare models side by side and try them: organisers are running indoor test drives and test rides, and say buyers who order a car or motorbike at the show can claim cashback worth up to Rp200 million, depending on the brand and model. Entry is free, according to KatadataOTO. Opening hours are 10:00–19:00 WIB on 30 and 31 October and 10:00–18:00 WIB on 1 November.

    Moeldoko again cited running costs of around Rp800,000 a month for an EV against Rp6–8 million for a petrol car. That is his illustration rather than a measured average, and real savings depend on mileage and how you charge — our guide to EV running costs in Indonesia breaks down the numbers.

    Update: for the electric motorbike deals on offer at the show, see PEVS 2026: Honda, Polytron and United cut electric motorbike prices.

    Follow-up: PEVS 2026 closed on 1 November with 35,257 visitors; read our wrap-up, including the Just EV coalition’s report card for carmakers.

    Sources: Liputan6; CNN Indonesia; Medcom.id; KatadataOTO.

  • Omoda O4 EV set for Indonesian production from November

    Omoda O4 EV set for Indonesian production from November

    Top image: Photo: Jigugo, CC BY-SA 4.0, via Wikimedia Commons

    Omoda Jaecoo plans to start building the Omoda O4 electric car in Indonesia in November 2026, with official prices to be revealed when production begins, according to reports by detikOto and Deliknews.

    Shawn Xu, President Director of Omoda Jaecoo International, told Indonesian journalists at the company’s OJ Building in Wuhu, China, that the O4 would move onto an Indonesian production line in around two months, and that the official launch, including pricing, would take place at the same time.

    “At that same time, we will officially launch it [including the price].” – Shawn Xu, President Director, Omoda Jaecoo International, quoted by Deliknews (translated from Indonesian)

    Neither report named the plant that will build the car. The O4 was first shown to the Indonesian public in July 2026, and the brand has been taking reservations with a Rp 5 million booking fee since the GIIAS 2026 show, Deliknews reported.

    Claimed specifications

    • Battery: 65.05 kWh lithium iron phosphate (LFP)
    • Range: up to 553 km on the NEDC test cycle (a photo caption on detikOto gives 533 km, but the article text and Deliknews both state 553 km)
    • Charging: DC fast charging at up to 119 kW, with 20–80% in about 22 minutes
    • Performance: 160 kW and 275 Nm; 0–100 km/h in a claimed 7.1 seconds
    • Cabin tech: a voice-controlled “Super AI Cockpit” that the company says runs on a large language model with ten AI agents

    The styling follows the brand’s “Cyber Mecha” design language, with what Omoda calls “Cyber Lightning” headlamps.

    Where it fits

    The O4 would join a growing Chery-group electric line-up in Indonesia. Sister brand Jaecoo’s J5 EV, listed at Rp 279.9 million to Rp 324.9 million OTR Jakarta in September (see our Jaecoo directory entry), has been among the country’s best-selling EVs this year, as our January–September sales round-up shows. Omoda’s existing electric model in Indonesia is the E5 (Omoda in our EV directory).

    What it means for buyers

    • No price yet. Anyone paying the Rp 5 million booking fee is committing before the price is known, so check the refund terms with the dealer.
    • Local production matters. Indonesia’s EV tax incentives are linked to local-content (TKDN) requirements, so locally built models are generally better placed to qualify – see our EV tax incentives guide. The launch price will show how much of that advantage reaches buyers.
    • Treat the range claim with care. NEDC figures tend to be optimistic, so real-world range is likely to be lower than 553 km.

    Sources: detikOto – Omoda O4 Diproduksi di Indonesia November 2026, Bakal Dijual Harga Berapa? (24 Oct 2026); Deliknews – Omoda O4 Mulai Diproduksi November 2026, Harga Resminya Segera Terungkap (24 Oct 2026)

  • Industry minister presses Toyota to go full electric and export more

    Industry minister presses Toyota to go full electric and export more

    Top image: Photo: TTTNIS, CC0, via Wikimedia Commons

    Indonesia’s industry minister, Muhammad Sarmuji, has asked Toyota to move beyond hybrids and build more fully battery-electric vehicles (BEVs) in the country, while also pushing the brand to ship more Indonesian-made cars abroad. The request came at a meeting on Tuesday 27 October at the Ministry of Industry in Jakarta with Nandi Julyanto, president director of PT Toyota Motor Manufacturing Indonesia (TMMIN), Antara reported.

    “Go further” than hybrids

    Sarmuji praised Toyota’s hybrid production and its local battery plant for hybrids, which already exports components, but said the government now wants the company to commit more firmly to full electrification. He argued that Indonesia’s battery ecosystem is now advanced enough to support it.

    “We are asking Toyota to also go further, to full electric.”
    — Muhammad Sarmuji, Minister of Industry, via InvestorTrust (translated from Indonesian)

    The push follows the ministry’s recent signals that it is also open to support for hybrids and range-extended EVs, which we covered in our report on Sarmuji’s hybrid and REEV incentive proposal. Tuesday’s message suggests the ministry still wants Toyota to put BEVs at the centre of its local plans.

    Toyota: more BEVs on the way, details unknown

    Nandi said Toyota already builds the bZ4X electric SUV in Indonesia and is working on further battery-electric models for the local market. He did not disclose segments, specifications, prices or timing, according to CNBC Indonesia.

    “We are also preparing the next BEV models that suit the needs and conditions of the Indonesian market.”
    — Nandi Julyanto, TMMIN, via CNBC Indonesia (translated from Indonesian)

    Asked whether those models would be cheaper than the bZ4X, Nandi said he hoped so. CNBC Indonesia lists Jakarta on-the-road prices of about Rp799 million for the bZ4X Standard and Rp889 million for the all-wheel-drive bZ4X Touring, which puts Toyota’s locally built EV well above many of the Chinese-brand EVs on sale.

    Local content and the 2027 deadline

    The timing matters because the minimum local-content (TKDN) requirement for EVs rises to 60% from 2027, as set out in the ministry’s local-content roadmap. Earlier this month TMMIN vice president I Nyoman Winaya said the Karawang-built bZ4X stood at 40% local content and that the company was still studying how to reach the higher threshold, Radar Bogor reported. The same report said Toyota is working with CATL on battery production in Indonesia, with an investment reported at around Rp1.3 trillion, initially aimed at hybrids but with potential to supply BEVs later.

    Exports: Australia and double-cab pickups

    On exports, Sarmuji asked TMMIN to widen both its model range and its list of destination markets. He singled out Australia, citing its proximity and existing trade agreements, and urged Toyota to build double-cab pickups in Indonesia to compete for Australian demand, saying the government was prepared to adjust domestic rules to make that possible. Antara did not record a direct Toyota answer on the pickup idea.

    According to the minister, TMMIN employs around 8,000 people directly and supports roughly 360,000 jobs across its suppliers and dealer network.

    What it means for buyers

    For now, nothing changes on the showroom floor: the bZ4X remains Toyota’s only locally assembled BEV, and the brand has not said when the next one will arrive or what it will cost. But a more affordable, locally built Toyota EV would give buyers who value Toyota’s dealer and service network an alternative to Chinese brands. Our Toyota directory entry lists the current line-up and prices.

    Sources: Antara News; CNBC Indonesia; InvestorTrust; Radar Bogor (Jawa Pos)

  • Jakarta reviews odd-even rule as Leapmotor warns over EV exemption

    Jakarta reviews odd-even rule as Leapmotor warns over EV exemption

    Top image: Photo: Serenity, CC BY-SA 3.0, via Wikimedia Commons

    Jakarta’s provincial government is reviewing its odd-even (ganjil genap) traffic restriction, and the question of whether battery electric cars should keep their exemption from it is now firmly on the table. Carmakers are watching closely: for many Jakarta buyers, being able to drive on any day regardless of number plate is one of the most tangible everyday perks of owning an EV.

    What is being reviewed

    The odd-even scheme, which limits private cars on major corridors to alternate days based on the last digit of their plate, has been in place for roughly a decade. At the end of September the Jakarta Transportation Agency (Dinas Perhubungan) held a focus group discussion on the policy. According to Suara.com and Liputan6, the review is looking at emissions, economic and environmental effects, and how vehicles are classified by fuel or power source.

    Agency head Budi Awaludin stressed that the discussion was only about gathering public input and that further study is needed before anything changes. No decision has been announced on the EV exemption. In early October, Jakarta DPRD member Muhammad Taufik Zoelkifli (PKS) also said the policy, which dates from 2016, should be evaluated with more attention to its economic impact, Kumparan reported.

    The review is a shift in tone from May, when the agency’s then head, Syafrin Liputo, said the province would keep the odd-even exemption for battery EVs, alongside its exemptions from regional vehicle tax (PKB) and title-transfer duty (BBNKB), according to the National Police news portal. That followed a national interior ministry regulation (Permendagri 11/2026) which stopped treating EVs as automatically exempt from those regional taxes, leaving each province to decide. Our guide to EV taxes and incentives in 2026 explains how those levies work.

    Leapmotor: removal would hit demand

    Speaking at a media event near Bogor on 20 October, Leapmotor Indonesia brand head Samuel Christian Wowor said the exemption is one of the triggers that persuade consumers to switch to an electric car, so removing it would inevitably affect the market. He also argued that people who bought EVs on the basis of the current rules should be considered in any change (Suara.com).

    “For our part, we will of course simply follow whatever government regulations are in force.”
    — Samuel Christian Wowor, Leapmotor Indonesia, to Suara.com (translated from Indonesian)

    Local content push could also affect prices

    At the same event, Wowor said Leapmotor aims to lift the local content (TKDN) of its locally assembled cars from 40% to 60% by 2027, in line with the government’s requirement. The company is still studying which parts to localise, with the battery among the options, and said the investment needed could end up reflected in vehicle prices, Suara.com reported. The B10 and C10 are currently listed at Rp 499 million and Rp 618 million on the road in Jakarta, and are assembled by PT National Assemblers. BYD has set out a similar 60% target for its Subang plant.

    What it means for buyers

    • Nothing has changed yet. Battery EVs remain exempt from Jakarta’s odd-even rule while the study continues.
    • Do not rely on the perk for the long term. If daily access to odd-even corridors is a major reason for buying an EV, factor in that the exemption is under review and could be narrowed.
    • Watch local-content timelines. Brands moving from 40% to 60% TKDN by 2027 have warned that localisation costs could push prices up, although none has announced an increase.

    Update, 23 October: Industry Minister Muhammad Sarmuji has proposed extending odd-even exemptions and other perks to hybrids, PHEVs and REEVs. Read our follow-up.

    Update (27 October 2026): Periklindo chairman Moeldoko says the EV exemption could be dropped once EVs reach about 30% of vehicles. Read our follow-up.

    Explainer: how the rule works, which roads and vehicles it covers and what the review could mean for buyers, in our guide to Jakarta’s odd-even rule and EVs.

    Sources: Suara.com (30 Sept); Liputan6 (30 Sept); Kumparan (21 Oct); Suara.com (21 Oct, odd-even); Suara.com (21 Oct, TKDN); Tribratanews Polri (5 May).

  • BYD says Subang-built EVs already top 40% local content, eyes 60% for 2027

    BYD says Subang-built EVs already top 40% local content, eyes 60% for 2027

    Top image: Photo: Alex Neman, CC BY-SA 4.0, via Wikimedia Commons. Pictured: a BYD M6 in Surabaya; the M6 is one of three BYD models now built at the Subang plant.

    BYD Motor Indonesia says the cars rolling out of its new factory in Subang, West Java, already exceed 40% local content, and that it is confident of clearing the higher 60% threshold that Indonesia’s electric-vehicle rules set from 2027.

    The comments, made by Luther Panjaitan, BYD Indonesia’s head of public relations and government relations, at a press event in South Jakarta and reported by Suara.com on 19 October, are the clearest signal yet that the market’s best-selling EV brand intends to keep its models eligible for incentives once the local-content bar rises.

    What BYD said

    According to Suara.com and an earlier interview with KatadataOTO, Panjaitan said:

    • Units produced at BYD’s own Indonesian facility already have local content (TKDN) of more than 40%.
    • Three models are now made locally: the Atto 1 city car, the M6 EV and the M6 DM plug-in hybrid. BYD said localising these models was a response to demand and would speed up deliveries to dealers.
    • Because the Subang plant has its own stamping, welding, painting and assembly lines, the company says it has the flexibility to raise local content further.

    Panjaitan argued that owning a factory is currently one of the most realistic ways for a carmaker to reach 60%. “We are very confident and will meet the government’s request to reach that target as soon as possible,” he said (translated from Indonesian, via Suara.com).

    KatadataOTO also reported that one model from BYD’s premium Danza line-up will be assembled at a BYD facility in future, although no timing was given.

    The Subang plant

    The factory, in the Subang Smartpolitan industrial park, was inaugurated on 3 September. At the opening, BYD Indonesia president director Eagle Zhao said it can build up to 150,000 vehicles a year, that more than 5,000 local workers had already joined the company with a target of around 20,000, and that BYD was aiming to reach 60% TKDN from January 2027, Republika reported. Zhao also said BYD planned to carry out some battery-related assembly work in Indonesia, but gave no details of capacity or timing.

    What the rules require

    Local-content requirements for battery EVs are set by Presidential Regulation 79 of 2023. As summarised by KatadataOTO, the minimum is 40% for 2022–2026, rising to 60% for 2027–2029 and 80% from 2030. (Suara.com’s report describes the 60% stage as covering 2027–2028; we have followed the regulation’s dates as reported by KatadataOTO.)

    BYD is not the only route to compliance. As we reported last week, the Ministry of Industry says brands could also reach 60% by using batteries from Indonesian producers, without needing to build their own plants. The ministry has also reaffirmed that the 60% rule will start in 2027.

    Why it matters

    BYD’s locally built Atto 1 topped EV wholesales in September with 4,840 units, ahead of the Jaecoo J5 EV (3,276) and Geely EX2 (1,890), according to Gaikindo figures cited by KatadataOTO. Keeping that model compliant is therefore important both for BYD’s volumes and for the wider market (see our January–September EV sales round-up).

    What it means for buyers

    For now, nothing changes at the showroom: the Atto 1, M6 EV and M6 DM are already built in Subang. The bigger question is 2027. Models that cannot show 60% local content may lose access to tax incentives, which could push up prices, while brands with Indonesian plants, or access to Indonesian-made batteries, should be better placed to hold prices steady. Buyers weighing an imported EV against a locally built one may want to ask dealers how each model will be treated after January 2027. Current BYD prices and models are listed in our EV directory entry for BYD.

    Update (3 November 2026): The National Economic Council has since said the 60% requirement will apply from 2027 together with locally assembled battery packs. Read our follow-up.

    Sources: Suara.com (19 Oct 2026); KatadataOTO (16 Oct 2026); Republika (3 Sep 2026).

  • Imported EVs could hit 60% local content with local batteries, ministry says

    Imported EVs could hit 60% local content with local batteries, ministry says

    Top image: Photo: RudolfSimon, CC BY-SA 3.0, via Wikimedia Commons

    Electric car brands that do not build vehicles in Indonesia could still meet the country’s 60% local-content requirement from 2027, provided they use batteries made in Indonesia, the Ministry of Industry (Kemenperin) said on Tuesday 13 October.

    The comments, reported by Suara.com from the ministry’s offices in Jakarta, add a new wrinkle to the tightening TKDN (domestic component level) rules that we covered when the ministry reaffirmed the 60% threshold at the start of the month.

    What the ministry said

    Setia Diarta, director general of metal, machinery, transport equipment and electronics industries (ILMATE) at Kemenperin, said the ministry’s own simulations showed the 60% level was reachable whether or not a brand operates an assembly plant in Indonesia. “So whether you have a factory or not, it is actually possible,” he said (translated from Indonesian).

    He pointed to an unnamed brand that still assembles its cars overseas but already fits Indonesian-made batteries, saying that approach could help it catch up with the local-content target. Suara’s report does not explain how a vehicle assembled abroad would be scored under the TKDN system, and the ministry did not name the brand.

    The timetable

    The requirements come from Presidential Regulation (Perpres) No. 79 of 2023, which revised Perpres No. 55 of 2019 on accelerating battery-electric vehicles. Under it, the minimum local content for battery-electric cars is:

    • 40% for 2022–2026
    • 60% for 2027–2029
    • 80% from 2030

    Patia J. Monangdo, who leads the ministry’s battery-electric vehicle industry working team, said the average TKDN of electric cars in Indonesia is currently around 45–47%, with the best-performing product at 80%. More than 100 electric vehicle products now hold TKDN certificates, he said. On those averages, many models would need to add well over ten percentage points of local content within roughly 15 months (our estimate, based on the ministry’s figures).

    Why batteries matter so much

    The battery is the single most expensive part of an electric car, so localising it moves the TKDN score more than almost any other component. At a separate industry discussion, the same ministry team said batteries were the “crucial topic” for the next stage, Katadata reported. According to Katadata’s account, local battery packaging adds around 10% to a vehicle’s score, locally made housings and wiring harnesses around 20%, and a domestically produced battery management system around 30%, with local cell production also seen as important.

    Not every carmaker is ready. Toyota’s Indonesian manufacturing arm TMMIN, which began building the bZ4X locally in late 2025, said at the end of September that it was still studying whether it could meet the 2027 target, Katadata reported.

    The push lines up with the government’s battery ambitions. Indonesia shipped its first export of EV batteries from the Weda Bay industrial park in North Maluku on 8 October, and officials want more of that output to end up in cars sold at home.

    What it means for buyers

    TKDN is not just an industrial target: it decides which cars qualify for tax breaks. The 40% threshold has been the gateway to government incentives such as VAT relief, according to the ministry, so models that miss the higher bar from 2027 risk losing that support and becoming more expensive. If imported models can qualify through local batteries, buyers could see a wider choice of incentive-eligible cars. Until the ministry publishes how such vehicles would be assessed, though, shoppers should check a model’s current TKDN status before counting on a discount. Our guide to EV tax incentives explains how the current schemes work.

    Update: BYD says its Subang-built models already exceed 40% local content and that it expects to meet the 60% rule in 2027. Read our follow-up.

    Update (3 November 2026): The National Economic Council has since said the 60% requirement will apply from 2027 together with locally assembled battery packs. Read our follow-up.

    Sources: Suara.com (13 Oct 2026); Katadata (30 Sep 2026); GridOto (23 Nov 2025); Antara (8 Oct 2026).

  • EV taxes and incentives in Indonesia in 2026: what buyers now pay

    EV taxes and incentives in Indonesia in 2026: what buyers now pay

    Top image: Photo: Ilham jayakesuma, CC BY-SA 4.0, via Wikimedia Commons

    For most of 2024 and 2025, buying an electric car in Indonesia came with a stack of tax breaks: duty-free imports for brands that promised to build locally, a government-paid slice of VAT, and zero regional vehicle tax. In 2026 that stack has been largely dismantled, a replacement has been promised repeatedly but not yet delivered, and the rules now differ depending on where the car is made and where you live. This guide sets out what has changed, what still applies and what is still pending, based on reporting up to the end of September 2026.

    What ended on 31 December 2025

    The CBU import scheme

    Since 2024, brands that committed to building EVs in Indonesia could import fully built (CBU) electric cars without import duty or luxury tax (PPnBM). CNN Indonesia reported that this cut import duty from 50% to 0% and PPnBM from 15% to 0%, and that the scheme, under Industry Ministry Regulation 6/2023, was not extended beyond 2025.

    The catch for manufacturers is that the bill is not over. According to Kumparan, companies that used the scheme must build as many cars locally as they imported, by the end of 2027, backed by bank guarantees. Kumparan listed nine brands moving from imports to local production (Geely, BYD, VinFast, GWM, AION, Volkswagen, Xpeng, Citroën and Maxus), alongside six already assembling locally (Hyundai, Wuling, Chery, Polytron, Neta and MG). Brands that stayed out, such as BMW, Mercedes-Benz and Volvo, now face import duty of up to 50%, 12% VAT and 15% luxury tax on imported EVs, the outlet reported.

    The 10% VAT discount

    The other big break was PPN DTP, a portion of VAT paid by the government. Under Finance Ministry Regulation (PMK) 12/2025, the state covered 10 percentage points of VAT on four-wheeled battery EVs with at least 40% local content, from 4 February to 31 December 2025, Tempo reported. The same rule gave hybrids a 3% luxury-tax discount. CNN Indonesia confirmed in January that no new rule had been issued to carry the VAT break into 2026.

    The replacement incentive: promised, redesigned, delayed

    A new incentive has been under discussion all year, and its shape has changed several times:

    • May: Finance Minister Purbaya Yudhi Sadewa said the government would cover between 40% and 100% of VAT on electric cars depending on battery type, plus a Rp5 million subsidy per electric motorbike, for 100,000 of each, starting in June, Antara reported.
    • Late May: Purbaya postponed the scheme by a month because the calculations were not finished, CNBC Indonesia reported.
    • June: Coordinating Economic Minister Airlangga Hartarto confirmed a further delay. DDTC News reported the proposal as 100% VAT cover for cars with nickel-based (NMC) batteries and 40% for those using alternatives such as lithium iron phosphate (LFP).
    • August: At GIIAS, Purbaya said President Prabowo Subianto would announce the incentives within weeks, with the quota raised to 500,000 cars and 500,000 motorbikes, CNN Indonesia reported.
    • September: The motorbike element had been reshaped into Rp3 million per locally made e-motorbike, with a Rp3 trillion budget and a target of up to one million units, detikOto reported. On 24 September, ministers said they were still waiting for the Finance Ministry regulation, according to Telset.

    We have not found any report that the car VAT incentive has been put into force. Until a regulation is published, buyers should treat dealer talk of a coming “government discount” as unconfirmed. Our latest report on the e-motorbike subsidy has the most recent position on the two-wheeler scheme.

    “Yes, it’s delayed again, while we examine it first.” — Airlangga Hartarto, Coordinating Minister for Economic Affairs, to DDTC News, June 2026 (translated from Indonesian)

    Regional vehicle tax: no longer automatically zero

    Annual vehicle tax (PKB) and the transfer fee paid on a new registration (BBNKB) are regional taxes. EVs used to be exempt nationwide. Home Affairs Ministry Regulation 11/2026, effective from April, ended the automatic exemption and handed the decision to regional governments, which may grant a full exemption or a reduction, Antara and Liputan6 reported.

    “It still really needs incentives. But of course, we have to consider our fiscal situation.” — Deputy Industry Minister Faisol Riza, to Antara

    In practice, many EV owners are still paying nothing. Jakarta, the largest EV market, has kept PKB and BBNKB at zero and still exempts battery EVs from the odd-even traffic restriction, FIN reported in May. A Home Affairs circular dated 22 April (No. 900.1.13.1/3764/SJ) is cited as the basis; local reports differ on whether it simply permits governors to keep the exemption or instructs them to. Either way, the position can vary by province, so check with your local Samsat office or the provincial revenue agency (Bapenda) before you buy.

    Local content (TKDN): the rule behind every incentive

    Almost every EV incentive in Indonesia is tied to local content, known as TKDN. Battery-electric cars need 40% local content through 2026, rising to 60% from 2027 and 80% from 2030, as the Industry Ministry restated this week. Parts makers have warned that the 2027 step will be hard to meet without local battery cells, as we reported in our GIAMM story. If a future VAT incentive also depends on battery chemistry, as proposed, the price gap between models could widen depending on where and how they are built.

    Where the market stands

    The loss of incentives has not stopped growth. Electric cars reached 101,171 sales in January–August 2026, or 16.88% of the 599,491-unit market, Suara reported. The electric motorbike market has been weaker, which manufacturers partly blame on buyers waiting for the subsidy. See our report on the e-motorcycle sales slump.

    What it means for buyers

    • Locally assembled EVs are now the value end of the market. With the CBU scheme gone, brands that build locally have the clearest tax advantage. Brands still importing have to absorb the duty or pass it on in their prices.
    • Do not count on a VAT discount yet. If one arrives, it may favour cars with nickel-based batteries over LFP models. Ask the dealer whether a price-protection or refund clause applies if an incentive is introduced shortly after you buy.
    • Check your province. Whether you pay PKB and BBNKB now depends on where the car is registered. Jakarta remains at zero, but other regions can set their own rates.
    • Motorbike buyers have the most to gain from waiting. A Rp3 million subsidy is a large share of the price of an entry-level e-scooter, but there is still no firm start date.

    For models and current prices, see our electric car buying guide, our electric motorbike buyer’s guide and the IndoEVs directory of brands on sale in Indonesia. We will update this guide when the new incentive regulations are published.

    Related: EV running costs in Indonesia: home charging, SPKLU, tax and petrol compared

    Latest: the planned VAT relief may favour nickel-battery cars over LFP models, a split the industry body Periklindo is challenging. Read: Periklindo pushes back on bigger EV incentives for nickel-battery cars.

    Sources: CNN Indonesia (6 Jan 2026); Kumparan; Tempo (19 Feb 2025); Antara (7 May 2026); CNBC Indonesia (26 May 2026); DDTC News (23 Jun 2026); CNN Indonesia (4 Aug 2026); detikOto (1 Sep 2026); Telset (24 Sep 2026); Antara (22 Apr 2026); Liputan6; FIN (5 May 2026); Suara (1 Oct 2026).

  • Ministry reaffirms 60% EV local-content rule from 2027 as EV share hits 16%

    Ministry reaffirms 60% EV local-content rule from 2027 as EV share hits 16%

    Top image: Photo: Andra Febrian, CC BY 4.0, via Wikimedia Commons

    Indonesia’s Ministry of Industry has restated that locally built battery-electric vehicles will need to reach 60% local content (TKDN) from 2027, rising to 80% from 2030. Officials also said electric cars now make up 16% of the domestic market, and that EVs could overtake combustion-engine vehicles within the decade.

    The comments came at a forum on Wednesday 30 September titled “Powering Indonesia Future: Green Cars, Blue Skies”, CNN Indonesia reported. They come two days after the parts makers’ association GIAMM warned that the current rules leave little room for local suppliers.

    The timetable

    Patia J. Monangdo, head of the ministry’s working team for battery-based electric vehicles, set out the staged requirements. According to CNN Indonesia, the minimum local-content levels for electric cars are:

    • 2019–2021: 35%
    • 2022–2026: 40%
    • 2027–2029: 60%
    • 2030 onwards: 80%

    Similar stages apply to electric two- and three-wheelers, the report said.

    “The roadmap for 2026 is currently 40 per cent; from 2027 to 2029 it will be 60 per cent.” – Patia J. Monangdo, Ministry of Industry, to CNN Indonesia (translated from Indonesian)

    None of this is a new rule. The 60% level was first due in 2024 under Presidential Regulation 55/2019. It was pushed back to 2027 by Presidential Regulation 79/2023, signed in December 2023. That revision also exempted vehicles converted to electric power by certified workshops. It also said that companies which imported cars under the incentive scheme must build locally to the TKDN schedule, or repay an amount equivalent to the incentives they received.

    What the forum did show is that the government is not planning another delay. With 2027 only three months away, car makers have little time left to close the gap. According to CNN Indonesia, the average TKDN score for EVs in Indonesia is currently 45–47%. The highest is 80%, and more than 100 EV products have been certified. In July, Patia told Viva that one model had already reached 80%.

    EV share climbs to 16%

    Patia also gave new figures on how fast the market is growing. He said electric vehicles’ share of sales had been only around 2–3% previously, reached about 12% in 2025 and stands at 16% so far this year, Portal Media and CNN Indonesia reported. The reports did not say whether the figure covers only battery-electric cars or also includes hybrids. It is also not clear which sales measure it is based on, so it may not match Gaikindo’s monthly data exactly.

    He said Indonesia can produce almost 1.5 million motor vehicles a year. He also argued that the country’s nickel reserves should bring investment across the whole battery chain, from nickel processing and cathode and anode production to cell making and recycling. We cover this in our guide to Indonesia’s battery industry. The ministry says it will help component makers with certification, technical training and competency standards so that they can join EV supply chains.

    Overtaking petrol cars “by 2029–2031”

    Deputy Industry Minister Faisol Riza went further. CNN Indonesia reported that under the ministry’s fast-growth scenario, EVs could outnumber combustion-engine (ICE) vehicles in 2029–2031. Under a moderate scenario, battery-electric vehicles would overtake ICE in 2032–2034. He said the projection does not yet take hybrids and plug-in hybrids into account. The report’s headline refers to the vehicle “population”, but it does not explain whether the ministry means annual sales or the total number of vehicles on the road. The difference is large. With EVs at 16% of sales today, it would take much longer for them to outnumber ICE vehicles on the road than for them to outsell them.

    What it means for buyers

    • Local content is the price lever to watch. Indonesia’s EV incentives have been tied to TKDN thresholds, and the e-motorbike subsidy now under discussion also requires at least 40% local content, OtoDream reports. If car makers cannot reach 60% by 2027, and incentives stay linked to the minimum level, prices of some models could come under pressure unless makers use more local parts or change their line-ups.
    • Imported models are most exposed. Brands that entered with imported (CBU) cars under the incentive scheme have committed to local production. Buyers of those models may see changes in which variants are offered and how much they cost as local assembly begins.
    • Nickel-based batteries could become more common. The ministry’s focus on nickel suggests the government wants more nickel-based batteries in future locally built EVs.

    For current prices and models, see our electric car buying guide and the IndoEVs directory.

    Update, 13 October 2026: the ministry now says brands without an Indonesian assembly plant could still reach 60% by using locally made batteries. Read our follow-up.

    Sources: CNN Indonesia – TKDN rules; CNN Indonesia – TKDN roadmap; CNN Indonesia – 16% market share; CNN Indonesia – EV vs ICE projection; Portal Media; Viva (July 2026); OtoDream – e-motorbike incentive.