Prabowo Urges Local Governments and Military to Procure Domestically Produced Electric Vehicles
Indonesia’s President Prabowo Subianto has called on provincial governments and the Indonesian Military (TNI) to prioritise purchasing domestically produced electric buses and trucks, arguing that public-sector demand can accelerate the growth of the national electric vehicle industry. Speaking during the inauguration of an electric commercial vehicle assembly plant in Magelang, Central Java, the president highlighted the role of government procurement in strengthening domestic manufacturing and supporting the country’s energy transition. Details of the announcement were reported by ANTARA News.
The new facility, owned by PT VKTR Teknologi Mobilitas, has the capacity to produce up to 10,000 electric buses annually. According to the president, the plant currently achieves a domestic component level (Tingkat Komponen Dalam Negeri, or TKDN) of around 40 per cent. The company aims to increase this to 60 per cent within two years and to 80 per cent within four years, reflecting broader efforts to expand Indonesia’s local manufacturing ecosystem.
Public Procurement Seen as Driver of Domestic EV Industry
During the inauguration, President Prabowo emphasised that government institutions should play a direct role in supporting domestic industrial development by prioritising locally produced vehicles. He instructed officials to track which provinces had not yet placed orders for domestic electric vehicles.
“We hope other provincial governments will also support and buy products made by our own nation across the country. Mr. Minister State Secretary, please write down those governors who haven’t ordered domestic products, such as (electric) buses, trucks, and so on. The TNI should also buy domestically,” — Prabowo Subianto, President of Indonesia
Some regional governments have already placed orders. The president cited Central Java province and the Jakarta administration as examples, noting that both have procured electric buses for their public transport systems, including the capital’s Transjakarta network.
Expanding Domestic Manufacturing Capacity
The Magelang facility reflects Indonesia’s wider strategy to build local capabilities in advanced manufacturing and clean mobility technologies. National initiatives to modernise industry have increasingly focused on integrating digital tools, automation, and innovation into production processes, as highlighted in efforts supporting technology and innovation in smart manufacturing.
Strengthening domestic supply chains is also viewed as essential for increasing local content levels in emerging industries. Government policies encouraging local procurement and industrial capability development align with broader programmes to expand the country’s technology ecosystem and workforce skills, including initiatives aimed at strengthening Indonesia’s ICT industry and digital capabilities.
Supporting Energy Transition Goals
President Prabowo described the development of the domestic commercial electric vehicle industry as a significant step in Indonesia’s transition away from fossil fuel dependence. By expanding the production and adoption of electric buses and trucks, the government aims to promote cleaner energy use while supporting national industrial growth.
He characterised the VKTR initiative as an important milestone for the country’s automotive sector and expressed hope that the company could evolve into a leading national manufacturer capable of competing with established international producers.
