Indonesia's Minister of Investment and Downstreaming, Rosan Roeslani, has stated that the government will offer additional incentives to electric vehicle (EV) manufacturers based on the level of domestic component usage (TKDN).

According to Roeslani, manufacturers that meet higher TKDN requirements will be eligible for greater incentives.

"The concept will be adjusted. With a higher TKDN, greater incentives will be provided. A different approach to TKDN will be implemented going forward," the minister announced in Jakarta on 06th May, 2025.

Currently, seven EV manufacturers have established production facilities in Indonesia: Vinfast, Volkswagen (VW), BYD, Citroen, Aion, Maxus, and Geely. These companies have invested a combined total of IDR 15.4 trillion (US$ 938 million) to produce 281,000 EVs per year.

"These are the manufacturers that have announced plans to relocate and have begun operations," Roeslani said.

He also stated that Indonesia has developed an EV battery production ecosystem. With more consumers adopting electric vehicles, the government's net-zero emissions target could be reached sooner. He added that achieving the goal of producing 2.5 million EV units annually by 2030 would require supporting infrastructure, including charging stations.

In line with this, the government has amended its regulations to allow third parties to develop EV charging stations.

"A government regulation has been revised to permit third-party involvement in establishing charging stations, in order to facilitate wider distribution across Indonesia," Roeslani said.

He also called on investors interested in operating in Indonesia to conduct research and development (R&D) related to electric vehicles. The government will offer incentives of up to 300% for R&D activities.