Defense Minister Sjafrie Sjamsoeddin reviewed progress on Indonesia’s National Car project in Subang, West Java, on Wednesday, marking a significant step in the government’s plan to build a domestic automotive hub. The project, which utilizes state-owned manufacturer Pindad, aims to reach an annual production capacity of 300,000 vehicles to boost industrial self-sufficiency and electric vehicle (EV) development.
The planned 539-hectare site in Subang is designed to function as more than an assembly plant; it will feature dedicated vehicle engineering centers, testing facilities, and research and development operations.
Project timeline and production goals
Construction for the automotive hub is scheduled to occur in three phases between 2026 and 2028, according to Pindad President Director Sigit Santosa. The first phase will develop 60 hectares of the site, targeting an annual production of 50,000 vehicles by 2028. Following this initial stage, the facility is expected to scale its capacity until it reaches the government’s target of 300,000 units per year.
Strategic goals for national industry
Minister Sjafrie, accompanied by Deputy Indonesian Military Commander Gen. Tandyo B. Revita and Defense Facilities Agency head Air Marshal Yusuf Jauhari, framed the project as a move toward technological mastery. According to state news agency Antara, the minister described the site as a strategic installation intended to create an integrated manufacturing ecosystem. The government intends for this initiative to reduce reliance on imported vehicles and foreign components while simultaneously building a robust domestic supply chain.
The involvement of Pindad, a state-owned defense manufacturer, signals a broader shift in Indonesian industrial policy. By leveraging defense-linked entities to drive commercial automotive and EV production, the government is attempting to centralize technological capability and long-term economic value creation under state oversight.
Employment and future outlook
The project is expected to create approximately 2,000 jobs, specifically targeting engineers, technicians, and university graduates. As an emerging industrial hub, Subang serves as the geographical anchor for this strategy. Analysts expect that if the facility successfully integrates EV technology and secures necessary technology transfers from global manufacturers, it could solidify Indonesia’s position within the Southeast Asian automotive sector.
Frequently Asked Questions
What is the primary goal of the National Car project?
The project aims to strengthen national industrial self-sufficiency, reduce dependence on imported vehicles, and advance electric vehicle technology through an integrated domestic manufacturing center.
Who is overseeing the development of the Subang site?
Defense Minister Sjafrie Sjamsoeddin is overseeing the project, with state-owned defense manufacturer Pindad, led by President Director Sigit Santosa, managing the industrial implementation.
How many vehicles does the government expect the facility to produce?
The facility is targeted to produce 50,000 vehicles annually by 2028, with a long-term goal of scaling up to 300,000 vehicles per year.
How do you think a state-led approach to automotive manufacturing will influence the competitiveness of domestic brands in the regional market?