Indonesia Plays Long Game: EV Batteries Before 40% TKDN

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Investing in Battery Power:

Indonesia’s government prioritizes domestic battery production before enforcing a 40% local content (TKDN) target for electric vehicles (EVs). Aiming for a gradual approach, the 40% TKDN requirement is now set for 2026 instead of 2024, allowing time for the local battery industry to mature. Deputy Minister Rachmat Kaimuddin emphasizes the need for a robust domestic battery supply chain to achieve long-term EV expansion.

“Realistic” Roadmap to Electrification:

After 2026, with a stable domestic battery supply, the government plans to raise the TKDN target to 60% by 2027 and eventually 80% by 2030. This phased approach aims to support sustainable EV growth by ensuring the availability of key components within Indonesia. The revised policy also reflects confidence in the growing domestic battery industry, expected to be well-equipped by 2026.

Prioritizing Long-Term Success:

By prioritizing domestic battery production, the government seeks to avoid short-term disruptions to the burgeoning EV market. Investing in domestic battery capabilities empowers Indonesia to develop a self-sufficient and globally competitive EV sector. This strategic move positions Indonesia as a leading player in the future of electric mobility in Southeast Asia.

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