Indonesia is intensifying its efforts to build a robust domestic electric bus industry by implementing stricter local-content requirements and expanding the use of battery-powered public transportation. This strategy aims to reduce reliance on imports and foster a self-sufficient automotive ecosystem.
Industry Ministry official Mahardi Tunggul Wicaksono announced the initiative during the INAPA 2026 and Busworld Southeast Asia 2026 exhibitions in Jakarta. He noted that the nation’s automotive sector is currently positioned to support the production of battery electric vehicles, specifically focusing on trucks and buses.
Strengthening Local Production
Currently, nine domestic manufacturers are producing electric trucks and buses, providing the capacity to meet demands for special-purpose vehicles and logistics. Some of these locally produced electric buses have already achieved domestic component, or TKDN, levels that exceed 40 percent, particularly within the bodywork segment.
To further this progress, the Industry Ministry is collaborating with bodywork industry players to revise regulations governing key TKDN components. These updated rules are expected to be issued soon and are intended to strengthen the implementation of local-content requirements across the broader automotive sector.
Investment and Infrastructure Goals
The government intends to maintain TKDN-based incentives for electric vehicles to support domestic manufacturing and accelerate the transition to clean energy. According to the national electric vehicle development roadmap, the minimum TKDN target for domestically produced electric vehicles is set at 40 percent by 2026.
The scale of the current industry is significant, having attracted Rp163 trillion (approximately US$9.2 billion) in investment. This sector currently provides direct employment to more than 69,000 workers.
Future Outlook
Several regional governments have already begun transitioning their public transportation fleets to electric buses. This shift signals a growing administrative commitment to transport electrification across the country.
If these trends continue, the transition may lead to a more efficient and environmentally friendly transportation system nationwide. The upcoming regulatory revisions could further accelerate the pace at which domestic manufacturers integrate local parts into their vehicles.
Frequently Asked Questions
What is the minimum local-content (TKDN) target for electric vehicles by 2026?
The target is set at 40 percent under the national electric vehicle development roadmap.
How many domestic companies are currently producing electric buses and trucks in Indonesia?
There are currently nine domestic manufacturers producing these vehicles.
What is the expected benefit of shifting public transportation to electric buses?
The transition is intended to help create a more efficient and environmentally friendly transportation system nationwide.
How do you think stricter local-content requirements will impact the affordability of public transportation in the long run?
