Indonesia is advancing its National Car Project in Subang, West Java. On June 10th, Defence Minister Sjafrie Sjamsoeddin reviewed the progress of the initiative, which is targeted to achieve an annual production capacity of 300,000 vehicles.

The project has been designated a national strategic installation and forms part of the government's efforts to reduce dependence on imported vehicles and foreign automotive components while expanding domestic automotive manufacturing and supply chain activities.

During the visit, Sjafrie reviewed plans for manufacturing facilities, vehicle engineering and development centres, testing facilities, research and development operations, and other supporting infrastructure included in the project's master plan.

Sjafrie was accompanied by Deputy Commander of the Indonesian National Armed Forces General Tandyo B. Revita and Head of the Defence Logistics Agency Air Marshal Yusuf Jauhari.

"The National Car Area is a strategic installation with an important role in national industry, technological capability, and the development of an integrated manufacturing ecosystem," Sjafrie said.

He stated that strategic manufacturing industries contribute to Indonesia's industrial activity, economic development, and technological capabilities. Sjafrie also called on stakeholders to strengthen cooperation and accelerate the implementation of the project.

The government expects the project to generate economic activity in Subang and surrounding areas through increased industrial operations, the expansion of local supply chains, and additional investment in the manufacturing sector. Located in Subang, West Java, the project is also expected to contribute to regional economic activity and Indonesia's automotive and electric vehicle manufacturing sector.

Officials estimate that the facility will create approximately 2,000 jobs for engineers, technicians, university graduates, and other technical workers once operational.

The project is also expected to support the development of electric vehicle-related capabilities, domestic automotive manufacturing expertise, and technology transfer from global automotive manufacturers.

President Director of Pindad, Sigit Santosa, said the project would be developed in three phases between 2026 and 2028. The first phase will focus on the development of a 60-hectare section of the site, with a targeted annual production capacity of 50,000 vehicles by 2028.

The long-term objective is to gradually expand production capacity to 300,000 vehicles per year as part of Indonesia's plans to develop a domestic automotive industry. The overall development area will cover approximately 539 hectares and is planned as an integrated automotive manufacturing site comprising production facilities, offices, vehicle engineering centres, testing facilities, research and development centres, and supporting infrastructure.

Santosa said Pindad had invested in human resource development for several years to support the project, including planners, engineers, technicians, implementation personnel, and other specialists required for large-scale industrial development.

"We have invested in human resources for this national project for several years, from planners and implementers to higher-level personnel," Santosa said.

The involvement of state-owned defence manufacturer Pindad is part of the government's approach to using state-owned enterprises in industrial development and technology-related projects.