The Ministry of Industry reported that total investment in Indonesia’s low carbon emission vehicle (LCEV) sector has reached Rp22.37 trillion (US$1.3 billion) since 2022 until September 2025 and produced some 878,000 LCEV units, with the support of some 274,000 local automotive component manufacturers.

Director General of Metal, Machinery, Transportation Equipment, and Electronics Industries at the Ministry of Industry, Setia Diarta, said there are now 15 LCEV producers operating since 2022. He noted that higher value-added potential in the national automotive sector − up to twice its current level − is a key factor driving investment.

“Bosch has made the right decision investing in an EV component plant in Indonesia. We hope Bosch will contribute significantly to supporting the LCEV program and advancing manufacturing technology,” Setia said during the groundbreaking ceremony for Bosch’s EV component factory in Cikarang, West Java, on Wednesday, November 19, 2025.

He added that the gross value added from the motor vehicle industry has reached Rp180 trillion, while the automotive ecosystem absorbed around 182,000 workers as of August 2025.

The Coordinating Ministry for Infrastructure and Regional Development reported that Indonesia’s battery electric vehicle (BEV) production capacity will reach 374,000 units per year by the end of 2025. This expansion is driven by 18 BEV manufacturers scheduled to begin production early next year after realizing Rp19.9 trillion in new investments.

Deputy for Basic Infrastructure Coordination at the Coordinating Ministry for Infrastructure and Regional Development, Rachmat Kaimuddin, emphasized that domestic EV adoption depends heavily on local production. He acknowledged that EV imports − especially completely built-up (CBU) units − have surged in recent years due to incentives waiving import duties and luxury goods VAT.

According to Rachmat, EV imports jumped ninefold last year − from 2,000 units in 2023 to more than 18,000 units. This year, CBU EV imports are projected to soar by over 250 percent to 65,000 units. As a result, total EV sales in Indonesia are expected to reach 100,000 units in 2025, with only around 35,000 units manufactured locally.

However, Rachmat stressed that this trend will shift drastically next year as the government will not extend CBU EV import incentives in 2026. The entire EV market is expected to transition to locally produced units, with domestic EV sales projected at a minimum of 100,000 units.

“Most EVs are still imported today. But we only grant import permits to companies committed to building EV manufacturing facilities in Indonesia,” Rachmat said at the Katadata SAFE 2025 event in Jakarta on September 11, 2025.