Indonesia is developing a large industrial complex in West Java to support its electric vehicle (EV) industry, with President Prabowo Subianto saying mass production of domestically developed electric cars is expected to begin by 2028 at the latest.

Prabowo said that a large industrial complex was being developed around Purwakarta and Subang as part of the government's efforts to strengthen domestic technology capabilities and reduce Indonesia's dependence on imported energy.

"The success of a nation in the modern era is defined by its level of mastery of science and technology and by its ability to leverage technology to sustain its life," Prabowo said.

The president said the government aims to develop a comprehensive domestic EV ecosystem covering cars, two-wheelers, buses, tractors and other equipment. He said the approach would support Indonesia's economic development while reducing its dependence on imported energy, which costs the country around US$ 30 billion annually.

The government is developing a large factory complex in the Subang region of West Java for EV production. According to a government statement issued in June, the development initially covers 60 hectares and is planned to produce up to 50,000 vehicles annually. It is then expected to expand to a 539-hectare facility with an annual production capacity of up to 300,000 vehicles.

Prabowo said the target is to begin mass production of domestically developed electric cars by 2028 at the latest, as Indonesia seeks to increase EV adoption in Southeast Asia's largest economy.

EV incentives and domestic manufacturing

The government is preparing measures to encourage wider EV adoption, including incentives for electric car purchases. Indonesia is considering a value-added tax exemption of up to 100% for selected electric car purchases.

The Indonesian government has set a target of having two million electric cars on its roads by 2030. The development of domestic EV manufacturing, batteries, charging infrastructure and after-sales services is being pursued alongside renewable energy expansion as part of Indonesia's strategy to strengthen its electric mobility industry and reduce its reliance on imported energy.

Renewable energy to support EV transition

Prabowo also highlighted plans to expand renewable energy generation to support the transition towards electric mobility. The government aims to develop solar power plants with a combined capacity of 100 gigawatts within four years, supporting the gradual phase-out of diesel-powered generators.

The renewable energy programme is being developed alongside domestic EV manufacturing, battery production, charging infrastructure and after-sales services to support the wider transition from fossil-fuel-powered vehicles and reduce Indonesia's reliance on imported energy.