Indonesia Inaugurates Electric Vehicle Assembly Plant to Boost Industrial Growth
Jakarta, The Gulf Observer: President of Indonesia, Prabowo Subianto, on Thursday inaugurated an electric commercial vehicle assembly plant operated by PT VKTR Teknologi Mobilitas in Magelang, Central Java, marking a significant step in the country’s industrial and energy transition efforts.
Speaking at the inauguration ceremony, President Prabowo lauded the company and its business group for their long-term vision in advancing national development and strengthening Indonesia’s industrial base. He emphasized that industrialization plays a vital role in technological progress by transforming innovation into products that deliver wide-ranging economic benefits.
The president highlighted the importance of achieving national self-reliance in strategic sectors, particularly food and energy, stressing that energy security remains essential for sustainable development. He described the electric vehicle industry as a key pillar of Indonesia’s energy transition strategy, aimed at reducing reliance on fossil fuels and promoting cleaner energy alternatives.
Describing the initiative as “historic” and a source of national pride, President Prabowo underscored the government’s commitment to supporting the sector’s growth.
The newly inaugurated plant has the capacity to produce up to 10,000 electric buses annually, with local content currently estimated at around 40 percent. The company aims to increase this figure to 60 percent within the next two years and further to 80 percent in the future.
Reaffirming the government’s support, the president assured that any challenges faced by the industry would be addressed promptly, given its strategic importance to the country’s development.
He also expressed optimism that VKTR would emerge as a leading national player in the commercial vehicle sector, drawing comparisons with global industry leaders such as Isuzu, Hino Motors, Hyundai Motor Company, and Daewoo, and voiced hope that Indonesia would soon establish VKTR as one of its own national champions.
