Toyota Motor Manufacturing Indonesia (TMMIN) is conducting studies to meet the target for domestic component levels (TKDN) for electric cars, which will increase to 60% from 2027.

TMMIN Deputy President Director I Nyoman Winaya said Toyota was considering various aspects required to meet the requirements. "We are still conducting studies regarding this target," Nyoman said in Karawang on September 29th.

According to Nyoman, the study also involves the government and several other stakeholders. Toyota is assessing manufacturing and supply chain readiness ahead of the higher TKDN target.

"This includes discussions with the government and other stakeholders, as well as assessing readiness and the various aspects required to meet these requirements," he said.

Based on Presidential Regulation Number 79 of 2023, the TKDN requirement for four-wheeled electric cars is set at a minimum of 40% for the 2022-2026 period.

The requirement will increase to a minimum of 60% from 2027 to 2029 and to 80% from 2030. Toyota currently says that the bZ4X electric car, which is produced locally using the completely knocked down (CKD) scheme, has met the minimum TKDN requirement of 40%.

Toyota prepares local battery supply chain

Despite meeting the current requirements, Toyota has not ruled out increasing local content in its electric vehicles. One of the steps being prepared by TMMIN is to increase the localisation of electric vehicle battery components.

In April 2026, TMMIN announced a strategic partnership with Contemporary Amperex Technology Co. Ltd (CATL) to develop electric vehicle battery production in Indonesia. Under the partnership, TMMIN has prepared an investment of IDR 1.3 trillion (US$ 72.5 million) to develop the electrified vehicle ecosystem, including the battery supply chain from upstream to downstream.

TMMIN currently has a battery pack production line in Karawang for Toyota electrified vehicles, including the Kijang Innova Zenix HEV, Veloz HEV and Yaris Cross HEV. Through its collaboration with CATL, Toyota also plans to develop production capabilities for battery cells and modules, which were previously imported. This could increase the local content of electrified vehicles while reducing dependence on imported components.

For Toyota, increasing TKDN involves vehicle production, supply chain readiness and the capabilities of the domestic component industry. Therefore, TMMIN is continuing discussions with the government and other stakeholders to assess the readiness of the various aspects required before the 60% TKDN target comes into effect in 2027.

Increasing battery production is part of this strategy. TMMIN stated that, through its collaboration with CATL, battery cells and modules that are currently imported are targeted for production using Indonesian resources. Developing the battery supply chain is therefore one of Toyota's measures to increase its electrified vehicle manufacturing capabilities while preparing for higher TKDN requirements in the coming years.