According to the Coordinating Ministry for Maritime Affairs and Investment, the domestic electric vehicle (EV) battery industry’s readiness is critical to meeting the domestic component level (TKDN) target for EVs.
Rachmat Kaimuddin, the ministry’s Deputy for Infrastructure and Transportation Coordination, highlighted that the government’s strategy of allowing time to meet the TKDN target of 40 percent for electric vehicles is driven by the completion of the supporting ecosystem.
“We can’t achieve it if we merely chase the target %. We require domestically produced EV batteries. “Our battery industry is growing and will be ready in 2026,” Kaimuddin said after attending a talk at Jakarta’s Kadin Tower on Friday.
He noted that if the EV battery sector is ready, the government’s policy mandating electric car manufacturers to comply with TKDN standards would become more practical.
“Say the battery industry is ready in 2026.” As a result, in 2027, we can require a TKDN of 60%, which is more reasonable. “We’re waiting for the industry to be ready,” he explained.
Previously, the Indonesian government set a TKDN objective of at least 40% for electric vehicles. The goal was defined in Presidential Decree Number 79 of 2023 on Amendments to Presidential Regulation Number 55 of 2019 on Acceleration of the Battery-Based Electric Motor Vehicle Program for Road Transportation.
The timeframe for obtaining a minimum TKDN of 40% for four-wheeled vehicles has been pushed out to 2026 in the regulation. The previous legislation set the goal of achieving it by 2024.
The TKDN objective for 2027-2029 has been set at a minimum of 60% in the most recent regulation, and a minimum of 80% in 2030 and beyond.
