Indonesia not to fear global China EV competition: AHY

Jakarta (ANTARA) - Indonesia must not be intimidated by China’s dominance in the global electric vehicle (EV) market, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) declared on Monday.

Speaking at a press conference for the launch of Grab’s new electric fleet expansion in Jakarta, AHY stated that global competition should instead serve as a catalyst to accelerate Indonesia's national electric vehicle industry with local brands and higher domestic content.

"China can be said to dominate the global EV market, and many are finding it difficult to compete with China. But do not forget that starting out naturally involves imperfections, trial and error, followed by development and research," AHY remarked.

To counter foreign dominance, the government is pushing for a phased increase in the domestic content level (TKDN) of vehicles manufactured within the country.

The ultimate blueprint is to transition from relying on imported components to achieving fully Indonesian-manufactured vehicles.

"We are using this as a catalyst to introduce local brands made in Indonesia," AHY explained, emphasizing that the country possesses both the natural resources and the engineering talent to succeed.

"Over time, we can truly achieve 100 percent Indonesian production, and our technology will not be left behind. We have the best young people, the best engineers and we can conduct joint research and joint production,” he added.

While acknowledging that international partnerships remain necessary to speed up industrial growth, AHY stressed that any global cooperation must be directed toward strengthening domestic capabilities.

He noted that President Prabowo Subianto has frequently emphasized the importance of establishing a strong, national electric-based automotive industry.

Furthermore, AHY affirmed that the government continues to build a comprehensive EV ecosystem. These efforts include formulating investment-friendly policies, offering tax incentives for manufacturing, developing the domestic EV battery industry, and expanding the electric vehicle charging infrastructure.

To ensure greater convenience for EV users, the government is also continuing to accelerate the installation of public electric vehicle charging stations (SPKLU) across Java and other regions in Indonesia, the minister concluded.

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Translator: Pamela Sakina, Yashinta Difa

Editor: Azis Kurmala

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