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Indonesia plans import substitution for electric vehicle components

A government assessment will identify parts that local suppliers can manufacture and areas requiring investment.

By Maya Santos

Electric vehicle components and wiring on a factory workbench
Photo: CNBC Indonesia

Indonesia wants to replace more imported electric vehicle parts with domestic products through a planned roadmap, Deputy Industry Minister Faisol Riza said. The initiative would extend from complete vehicles to individual components and is intended to strengthen the country's automotive supply chain.

At the Periklindo Electric Vehicle Conference in Central Jakarta, Faisol said officials were assessing the component needs of motorcycles, cars and other vehicles. The exercise would establish which parts Indonesian manufacturers can supply and where further investment is needed, helping suppliers develop closer links with vehicle producers.

The assessment covers vehicle bodies, frames, cables, wiring harnesses, seats, interior fittings, glass and tyres. Faisol said domestic industries already produced some of these items. Battery packs, battery housings and charging stations are also included in the government's inventory of component requirements.

Faisol separately highlighted electric drive motors and batteries as important components, adding that officials were examining several other components. He said the roadmap was intended to reinforce Indonesia's electric vehicle industry and contribute to the national economy.

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