JAKARTA: Indonesia is set to become a hub for electric vehicle (EV) manufacturing as seven global automakers have expressed plans to establish production facilities in the country, according to Investment Minister Rosan Roeslani.
Speaking to reporters in Jakarta on Tuesday, Rosan said several companies had already formalised their investment commitments and commenced factory construction. The list includes prominent automakers such as China’s BYD, France’s Citroën, Chinese brands Aion and Gili, Maxus, Germany’s Volkswagen, and Vietnam’s VinFast.
The cumulative investment value of these projects is estimated to reach Rp 15.4 trillion (approximately $911 million), with a combined production capacity of up to 281,000 vehicles annually.
“These seven EV producers have confirmed their plans to relocate investment and have already started construction, totalling Rp 15.4 trillion,” Rosan stated.
The minister highlighted Indonesia’s rapid growth in EV sales, noting that sales in 2024 more than doubled compared to the previous year. With this momentum, he stressed the importance of building a robust domestic EV manufacturing base to avoid relying solely on imports.
“The growth is highly significant. We must strengthen the ecosystem so Indonesia doesn’t end up merely being a consumer market,” Rosan said.
Indonesia’s EV sector is experiencing an upward investment trend, driven by the country’s commitment to achieving net-zero emissions by 2060 or sooner. This ambitious goal has spurred the acceleration of EV adoption, making Indonesia increasingly attractive to global investors.
Additionally, the country’s abundant natural resources, including nickel and bauxite used in EV battery production, are seen as a competitive advantage that bolsters investor confidence.
Rosan pointed out that EV sales in Indonesia grew by 153% year-on-year in 2024, with the market share of electric cars rising from 1.7% in 2023 to 5% of total vehicle sales. This significant increase underscores the potential for further growth as the country moves towards greater EV adoption and local production.
–Jakarta Globe
