Indonesian President Prabowo Subianto has set an ambitious target for the nation: to produce a fully domestically made car within the next three years. The announcement, made during a plenary cabinet session on Monday (20/10/2025), coincides with the first anniversary of the Prabowo-Gibran administration.
The President noted that initial groundwork is already underway, with the government allocating funds and preparing land for future production factories.
“This is not yet an achievement, but we have started the groundwork,” President Prabowo said. “We will have an Indonesian-made car in the next three years.”
He highlighted that the country is already producing vehicles with significant domestic content, pointing to an Indonesian-made "jeep" currently in use by government and military officials. “Now our officials and officers are proud to use jeeps made by Indonesia itself, not by other countries,” Prabowo remarked, highlighting his own use of the vehicle: “Your President uses an Indonesian-made jeep.”
The push for a national car program has swiftly gained support from the executive branch. Minister of Industry Agus Gumiwang Kartasasmita confirmed he has proposed designating the national car program as a National Strategic Project (PSN), known in Indonesian as Proyek Strategis Nasional.
“We certainly support this, and we have proposed the national car program to become a PSN. I have signed the proposal,” said Minister Agus. He believes that attaining PSN status will significantly fast-track the project.
While the Minister did not disclose the detailed scheme for the national car's production, he emphasized that PSN status would ensure all necessary preparations, including factory construction, are swiftly completed. “Once it becomes a PSN, everything will be prepared, everything will be ready. So, the PSN status is what we are fighting for now; we have proposed it,” he concluded.
Despite the government's optimism, industry analysts note the three-year target is highly aggressive. Indonesia's automotive sector is dominated by foreign manufacturers, and local players consistently face challenges in achieving the high local component requirements (TKDN) necessary to compete on cost and technology.
The initiative marks a renewed national effort, reminiscent of the controversial Timor national car project in the 1990s, which ultimately failed due to economic crisis and a World Trade Organization (WTO) dispute over protective tariffs. The current goal is to build a robust, homegrown automotive industry, curbing reliance on imports and solidifying Indonesia's manufacturing capabilities in the region.
