Ministry of Industry Strengthens TKDN and SNI to Boost the Competitiveness of the Automotive Sector

The Ministry of Industry is continuing to strengthen the domestic automotive industry structure and accelerate the transition to a globally competitive electric-vehicle ecosystem. This strategic move focuses on the two- and three-wheeled motor-vehicle sector.

As reported by Investortrust, Minister of Industry Agus Gumiwang Kartasasmita said the government is firmly committed to optimizing and deepening the national automotive industry structure. The strategy is achieved by raising the Domestic Component Level (TKDN) and strengthening EV-ecosystem policy.

The Minister added that the electric two- and three-wheeler sector is a development priority because of its large multiplier effect on investment, employment and industrial self-reliance. The government will continue to strengthen the relevant policies to accelerate local components and technology transfer.

Indonesia's two- and three-wheeler industry is showing positive momentum, with a growing number of manufacturers and a substantial increase in capacity for both conventional and electric models. This favorable outlook benefits from stable domestic sales, an expanding export ecosystem and the increasing popularity of eco-friendly vehicles.

In recent years, the number of electric two-wheelers has grown significantly. This phenomenon also reflects rising public interest in more efficient modes of transportation.

Setia Diarta, Director-General of the Metal, Machinery, Transport Equipment and Electronics Industry (ILMATE) at Indonesia's Ministry of Industry, said in a written statement on Monday (April 13, 2026): "The government will continue to closely follow the development of the national automotive industry, ensuring it develops in line with policy direction, especially in raising the localization rate (TKDN) and implementing the Indonesian National Standard (SNI). This is crucial to ensuring the domestic industry keeps improving its competitiveness, strengthens global competitiveness, and creates maximum added value for the national economy."

This policy direction aligns with the agenda of a dedicated working visit by Commission VII of Indonesia's House of Representatives (DPR) to the QJMotor Indonesia manufacturing plant in Cikarang. The visit provided a platform to strengthen synergy among regulators, legislators and enterprises.

The working visit was not limited to inspecting investment readiness and manufacturing capacity. The main agenda also included discussing the long-term development plan of the automotive industry, strengthening internal structure, expanding investment, and the sustainable implementation of TKDN and SNI.

Saleh Partaonan Daulay, chairman of Commission VII of the DPR, stressed that implementing TKDN plays a crucial role and is the foundation for building a sustainable, independent national automotive industry.

"We emphasize that every investment in manufacturing must not only be market-oriented but also raise domestic added value through the steady implementation of TKDN," Saleh said.

In response, the management of QJMotor Manufacture Indonesia said the company is fully committed to making Indonesia a major motorcycle production base in Southeast Asia, through raising capacity, developing the local supply chain and achieving global product standardization.

Setia said: "The government will continue to oversee the growth of the motorcycle industry, ensuring its sustainable development by strengthening the industrial structure, increasing investment, and enhancing cooperation among the government, the DPR and enterprises."