According to Indonesia’s Ministry of Investment, seven electric vehicle manufacturers from various countries have expressed formal interest in collectively investing around IDR 15.4 trillion, or approximately USD 911 million, into production facilities across Indonesia, signaling strong confidence in the nation’s industrial ecosystem and reflecting its rising status as a regional EV manufacturing hub.
The companies involved—based in China, South Korea, Japan, Viet Nam, and Indonesia itself—plan to establish factories for battery cells, EV components, and complete vehicles, with the ministry stating that these investments are projected to create thousands of direct and indirect jobs while contributing to national efforts to build a full EV supply chain from raw materials to end products.
Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan emphasized that this wave of foreign and domestic capital aligns with Indonesia’s strategic goal of becoming a key player in the global energy transition, especially as the government continues to offer tax breaks, land incentives, and infrastructure support for EV-related industries under its green economy framework.
The Investment Coordinating Board (BKPM) added that these manufacturers are currently in the feasibility study and licensing stages, with some expected to begin construction by early 2026, prioritizing areas like Central Java and North Sulawesi where access to ports and labor is optimal, and where the nickel supply chain—vital for lithium battery production—is already operational.
Experts from the Ministry of Industry believe that if these plans are executed, Indonesia could become Southeast Asia’s largest EV production base by 2030, reducing vehicle imports, boosting export potential, and enhancing environmental sustainability through a domestically anchored green industrial policy
