Inp.polri.go.id - Jakarta.  The Ministry of Industry has ordered six electric vehicle manufacturers, including BYD and VinFast, to comply with Indonesia’s local content (TKDN) requirements starting January 2026. 

The mandate follows the expiry of incentives for importing completely built-up battery electric vehicles.

“Companies must gradually increase local content from 40 percent to 60 percent by 2027. If production remains under completely built-up, the 60 percent target will not be achieved,” said Mahardi Tunggul Wicaksono, the Director of Maritime, Transportation Equipment, and Defense Industries, on Wednesday (27/8/2025), as quoted by antaranews.com.

The six automakers, namely BYD, VinFast, Geely, Xpeng, National Assemblers, and Inchcape Indomobil (GWM Ora), have committed Rp 15 trillion in new investment and additional production capacity of 305,000 units. Two firms will build new factories in Indonesia, while others expand or partner with local assemblers.

The policy, set under Presidential Regulation No. 79/2023, is designed to accelerate Indonesia’s EV ecosystem and shift consumer demand away from combustion-engine vehicles.

(mg/inp/pr/rs)