The Ministry of Industry (Kemenperin) is targeting a domestic component content (TKDN) level of at least 80% for battery-based electric vehicles (KBLBB) by 2030, with battery cells among the components that will contribute to meeting the target.

Director General of Metal, Machinery, Transportation Equipment and Electronics Industry (ILMATE) at the Ministry of Industry, Setia Diarta, said the TKDN requirements for KBLBB are regulated under Ministerial Regulation No. 6/2022 in conjunction with Ministerial Regulation No. 28/2023. Under these provisions, the TKDN requirement for KBLBB is at least 40% until 2026, rising to at least 60% during 2027-2029 and at least 80% from 2030.

"The TKDN for KBLBB is a minimum of 40% [until 2026]. Then, from 2027-2029, it will be 60%," Setia said during a hearing of the House of Representatives Commission VII Working Committee in Jakarta on September 9th, 2026.

The increase in TKDN is intended to encourage the electric vehicle industry to localise key components, particularly batteries. During 2027-2029, the industry is expected to have domestically produced batteries and modules, reducing dependence on imported components. The minimum 80% TKDN target from 2030 will cover broader localisation, including batteries and various other electric vehicle components.

"The most important thing that will trigger the TKDN value here is the battery cells. With several battery factories already under construction, this could potentially be achieved more quickly," he said.

Setia said the development of domestic battery production facilities could contribute to meeting the TKDN target, adding that current electric vehicle TKDN levels vary according to vehicle type and manufacturer. For two-wheeled vehicles, TKDN levels range from 27% to more than 70%, while four-wheeled vehicles have levels ranging from around 34% to 80%.

"When they're ready, the battery cells are also in production, they've reached 80, and several brands have already achieved this," he said.

In addition to vehicle and battery production, the government is developing domestic downstream processing of battery materials. Setia said nickel downstream development during 2022-2025 focused on producing nickel sulphate and cobalt sulphate, with this stage now completed. For 2026-2030, the focus will shift to cathode and anode materials, with several battery factories also preparing to produce both materials for direct use in electric vehicle batteries.

"So we can now have our own batteries, and the cathodes and anodes are already being manufactured domestically, using domestic nickel resources," he said.

These developments cover the electric vehicle battery supply chain from raw material utilisation through to battery production. On charging technology, the government continues to promote charging systems in line with the established roadmap, including the increasing use of ultra-fast chargers.

Setia added that higher TKDN is not intended solely to meet the required domestic component percentage. The policy also aims to ensure that investment in electric vehicles entering Indonesia considers the country as a production base as well as a market. The industry is therefore expected to increase component localisation and develop production capacity in Indonesia.

"This drafted TKDN aims to ensure that the electric vehicle industry and investment entering Indonesia don't just focus on Indonesia as a market, but also start considering Indonesia as a production base for electric vehicles," he said.

The Ministry of Industry is continuing to encourage higher localisation levels, particularly for battery components. Setia said domestic production of batteries, cathodes and anodes is expected to increase the contribution of domestic manufacturing by utilising Indonesia's nickel resources.

"That's why we're pushing for high localisation. The key is to ensure the battery can be produced in Indonesia. We're confident this will add value to the domestic industry, not just Indonesia as a market," he said.

In addition to developing battery production, the government is beginning to promote end-of-life technologies, including battery recycling. Setia estimates that battery recycling activity will peak in around three years as electric vehicle usage increases following the growth in adoption that began in 2023.