If the EV battery industry is ready, the government's policy requiring electric vehicle manufacturers to comply with TKDN regulations will become more realistic.
Jakarta (ANTARA) - The Coordinating Ministry for Maritime Affairs and Investment has said that the readiness of the domestic electric vehicle (EV) battery industry is important to achieve the domestic component level (TKDN) target for EVs.

The ministry's Deputy for Infrastructure and Transportation Coordination , Rachmat Kaimuddin, revealed that the government's policy to provide leeway in the time to achieve the TKDN target for electric vehicles of 40 percent is driven by the completeness of the supporting ecosystem.

"If we just chase the target percentage, we cannot do that. We need to have domestically made EV batteries. Our battery industry is starting to grow and will be ready in 2026," Kaimuddin said after attending a discussion at the Kadin Tower in Jakarta on Friday.

If the EV battery industry is ready, the government's policy requiring electric vehicle manufacturers to comply with TKDN regulations will become more realistic, he added.

"Let us say, in 2026, the battery industry is ready. That way, in 2027, we can require a TKDN of 60 percent, which is more realistic. We are waiting for the industry's readiness," he explained.

Earlier, the Indonesian government prescribed a TKDN target of at least 40 percent for electric vehicles. The target was outlined in Presidential Decree Number 79 of 2023 concerning Amendments to Presidential Regulation Number 55 of 2019 concerning the Acceleration of the Battery-Based Electric Motor Vehicle Program for Road Transportation.

In the regulation, the deadline for achieving a minimum TKDN of 40 percent for four-wheeled vehicles has been postponed to 2026. Under the previous regulation, it was targeted to be achieved before 2024.

In the latest regulation, the TKDN target for 2027–2029 has been fixed at a minimum of 60 percent, and for 2030 and beyond, a minimum of 80 percent.

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Translator: Farhan Arda N, Resinta Sulistiyandari
Editor: Arie Novarina
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