Industry Minister presses for Rp21.2 trillion LCEV investment
The government also wants makers to deepen local supply chains and use Indonesia as a regional production and export base.
Industry Minister Agus Gumiwang Kartasasmita pressed for the realization of Rp21.2 trillion in investment commitments for the low-carbon motor vehicle, or LCEV, program, saying only more than Rp5.5 trillion has so far materialized. Agus delivered the message at the Gaikindo Indonesia International Auto Show (GIIAS) 2026 in Tangerang on Thursday, as the government pushed automakers not to stop at sales or expansion announcements. According to Agus, the program, which has run since 2021, has involved 16 assembly companies, 322 domestic component suppliers and absorbed 195,000 direct workers. The average local content level for electrified vehicles now stands at 40-46 percent, with one model reaching 80 percent. The government also asked the industry to deepen tier 2 and tier 3 suppliers so Indonesia becomes a production and export base, not just a market.