Toyota, BYD and other automotive manufacturers are expanding their EV production capacity in Indonesia as the country moves towards a 60% TKDN requirement for battery electric vehicles.

Under the existing roadmap, the minimum requirement is scheduled to increase from 40% in 2026 to 60% from 2027 through 2029.

Gaikindo Secretary General Kukuh Kumara urged electric vehicle brand holders, or APMs, to establish production facilities in Indonesia. He said manufacturers participating in the government's incentive programme through 2025 had been aware of the requirements and the stages for increasing domestic content.

"So, when members want to participate in the [incentive] programme, there are requirements. When you join here, the requirements are there, and they already know all about it," Kukuh said, in a statement quoted on October 1st, 2026.

Kukuh also acknowledged that manufacturers' business plans do not always progress according to their original projections. Limited sales volumes remain a challenge, while meeting the 60% TKDN requirement by 2027 could be difficult for newer EV brands entering Indonesia. Manufacturers will nevertheless be required to comply with the applicable requirement.

"Well, that's the point. If you want to enter, based on the existing regulations, it's indeed difficult. Next year, you'll have to comply with the 60% TKDN requirement. That's what many people are asking about," he said.

Indonesia's EV market has seen several new brands enter the local market in 2026. BAW, Changan, iCar, Leapmotor, Solarky and Zeekr made their Indonesian debuts at the Gaikindo Indonesia International Auto Show (GIIAS) 2026 in August.

Farizon and SAG have also entered the commercial vehicle segment, while several Chinese manufacturers have begun establishing or expanding manufacturing operations in Indonesia. BYD is developing a factory in Subang, West Java, with an investment of approximately IDR 16 trillion (US$ 884 million). The Subang plant began operations in 2026, with local production continuing alongside efforts to increase domestic content.

Wuling operates a manufacturing facility in Cikarang, while Chery, Geely, BAIC and Jetour continue to use the assembly facilities of Handal Indonesia Motor (HIM) for domestic vehicle production. EV sales are also influencing manufacturers' production strategies and investment decisions in Indonesia.

Toyota Motor Manufacturing Indonesia is evaluating the readiness of its production facilities to meet the 60% TKDN requirement for EVs from 2027.

TMMIN Deputy President Director I Nyoman Winaya said the company was reviewing several aspects of its manufacturing operations and coordinating with the government and relevant stakeholders to align its plans with the applicable roadmap.

Toyota currently assembles the bZ4X electric car at its Karawang plant in West Java. According to the Ministry of Industry's Domestic Product Utilisation (P3DN) website, the bZ4X has a TKDN level of 40% and uses a 73.1 kWh lithium-ion battery.

Toyota, Daihatsu and other manufacturers are continuing vehicle production and exports from Indonesia while adjusting their operations to domestic market conditions, overseas demand and local-content requirements for EVs.