Indonesia Boosts Domestic EV Production with New Assembly Plant in Magelang

Jakarta: President Prabowo Subianto on Thursday inaugurated Indonesia’s first commercial electric vehicle (EV) assembly plant in Magelang, as PT VKTR Sakti Industries pledged to raise local content to strengthen domestic industry.

The facility assembles electric buses and trucks and features internationally standardized testing systems, including road and flood tests, marking a step forward in Indonesia’s push for cleaner transport.

President Prabowo praised the role of national private firms in advancing domestic industrialization, highlighting VKTR’s contribution and its potential to grow into a major automotive player.

"If Japan has Isuzu and Hino, and Korea has Hyundai and Daewoo, I hope that in a few years we will see VKTR as one of Indonesia’s champions,” Prabowo said, as quoted from Antara, Friday, April 10, 2026.

VKTR Commissioner President Anindya Novyan Bakrie said the company was established with a focus on decarbonization and economic independence, positioning electric vehicles as key to reducing reliance on imported fuel and supporting Indonesia’s net zero emission target by 2060.

He said the company is prioritizing electric buses and trucks to drive the national EV ecosystem, noting that many countries began developing their automotive industries through commercial vehicles.

The company said its local content, or Tingkat Komponen Dalam Negeri (TKDN), has reached 40 percent and is targeted to increase to 60 percent this year and 80 percent by 2028.

VKTR is also expanding green mobility infrastructure, including charging networks, and developing technologies such as retrofitting gasoline-powered vehicles into electric ones.

The Magelang plant is part of a Rp5 trillion investment by Bakrie Group and operates in partnership with domestic coachbuilders and strategic clients in the public transport and logistics sectors.