Indonesia’s electric vehicle (EV) sector is experiencing rapid growth, attracting a total investment of IDR 5.77 trillion (USD 346 million) across electric buses, passenger EVs, and two- and three-wheelers. Setia Diarta, Director General for Metal, Machinery, Transportation Equipment and Electronics at the Industry Ministry, highlighted that domestic EV manufacturers are expanding production capacities significantly: electric buses up to 4,100 units annually (IDR 380 billion investment), electric cars 110,660 units (IDR 4.23 trillion), and electric two- and three-wheelers 2.51 million units (IDR 1.16 trillion).
The government’s push for EV development aligns with its broader goal of creating a sustainable and environmentally friendly industrial ecosystem. The automotive sector, including EVs, remains a key contributor to Indonesia’s economy, accounting for 1.28% of GDP in Q3 2025. The investment surge and production expansion reflect Indonesia’s commitment to strengthen domestic manufacturing while supporting green technology adoption and long-term industrial resilience.
