The Indonesian Ministry of Industry (Kemenperin) is working to strengthen the supply chain for the national electric vehicle industry by engaging small and medium enterprises (SMEs) in the development of a comprehensive ecosystem for battery-powered electric vehicles. The Indonesian Minister of Industry, Agus Gumiwang Kartasasmita, emphasized that Indonesia has significant opportunities to become a key player in the global electric vehicle industry.
These opportunities are based on the country's wealth of natural resources, a large domestic market, and the government's commitment to developing an ecosystem for electric vehicles from production to marketing stages. The minister explained that the government, through Presidential Decree No. 55 of 2019, reaffirmed its commitment to developing electric vehicles as part of the agenda for transitioning to clean energy and a green economy.
Event Details
The Indonesian government is accelerating the enhancement of the electric vehicle industry structure (KBLBB) to increase its global competitiveness while ensuring added value to the national economy. Therefore, the development of an electric vehicle ecosystem is not limited to large companies but also encourages the active participation of small and medium enterprises.
As a tangible step, the Ministry of Industry, in collaboration with several entities, including the Ministry of Investment, organized an event to explore business opportunities for SMEs in the electric vehicle supply chain in the city of Cikarang, West Java, on May 22, 2026. Representatives from SMEs, local authorities, associations, and national manufacturers of automotive components participated in this event.
Background & Context
The electric vehicle industry in Indonesia is experiencing remarkable growth, as data from the Indonesian Automotive Manufacturers Association (Gaikindo) shows that sales of battery-powered electric vehicles reached 33,150 units in the first quarter of 2026, an increase of 95.9% compared to the same period last year. The country also recorded 798 electric buses by April 2026, while the number of electric bicycles reached 236,451 units, accounting for approximately 65% of the total number of electric vehicles in Indonesia.
This market growth reflects a shift in consumer preferences towards more energy-efficient and environmentally friendly vehicles, opening up opportunities for SMEs to capitalize on these increasing business prospects.
Impact & Consequences
These steps represent strong support for SMEs, allowing them the opportunity to enter the electric vehicle supply chain. The government aims to achieve a balance between large and small companies, contributing to the transfer of knowledge and technology necessary for developing the local industry.
The government expects the number of public electric vehicle charging stations to increase, with projections indicating that the number will reach 62,918 stations by 2030, supporting the plan to achieve 943,764 units of electric vehicles according to the roadmap of the Ministry of Energy and Mineral Resources.
Regional Significance
Indonesia's experience in enhancing the electric vehicle industry serves as a model for the Arab region, where Arab countries can benefit from this shift towards clean energy. With increasing interest in sustainability and innovation in transportation, Arab nations can invest in developing their local industries in this sector.
In conclusion, this development in Indonesia represents an important step towards achieving sustainable development goals and reflects the government's commitment to fostering innovation and economic growth by supporting small and medium enterprises.