Japanese automakers raise concern over local content rules
Southeast Asia’s largest economy will raise its local content requirement, also locally known as TKDN, for locally produced battery electric four- and two-wheelers to 60 percent from 40 percent on Jan. 1, 2027, before raising it to 80 percent in 2030 under Industry Ministry Regulation No. 6/2022.
Japanese automobile manufacturers have voiced apprehensions regarding Indonesia's upcoming local content rules for electric vehicles. The Southeast Asian economic powerhouse plans to raise the threshold for locally produced battery electric four- and two-wheelers from 40 percent to 60 percent as of January 2027, with the rate escalating to 80 percent in 2030.
This decision, outlined in Industry Ministry Regulation No. 6/2022, aims to bolster Indonesia's electric vehicle sector. During a recent meeting in Nagoya, Japan, between Japanese industry leaders and government officials, concerns were raised about licensing, financing for small and medium-sized suppliers, and the certification of local content rules as Indonesia transitions towards EVs.
Susiwijono Moegiarso, secretary of the Office of the Coordinating Economy Minister, affirmed the government's dedication to refining policies and resolving ongoing investment hurdles.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
