Indonesia to Begin National Car Production in 2027, Industry Minister Confirms

Jakarta, The Gulf Observer: Indonesia will begin production of its national car in 2027, Industry Minister Agus Gumiwang Kartasasmita announced on Thursday, confirming that state-owned defense equipment manufacturer Pindad has been appointed as the project’s main developer.

“We are projecting national car production to start in 2027,” Minister Kartasasmita stated, adding that detailed discussions with Pindad have already taken place regarding the vehicle type, manufacturing technology, pricing and marketing strategies, and after-sales services.

“These strategic discussions are aimed at preparing for and realizing the President’s directive for Indonesia to have its own national car as soon as possible,” he said.

Kartasasmita also revealed that the Ministry of Industry and Pindad are exploring the possibility of inviting additional partners to participate in the project’s development.
“Based on our assessment from the Ministry of Industry’s meeting with Pindad, we can conclude that Pindad is ready and its concept is quite complete,” he affirmed.

The minister further noted that the government is currently formulating stimulus and incentive policies to strengthen the automotive sector, emphasizing the industry’s strategic role in job creation and economic resilience.
“The Ministry of Industry is paying special attention to the automotive sector because it is too important to be ignored. There will be at least a fiscal policy in 2026 to accelerate the growth of the automotive sector,” he added.

President Prabowo Subianto had earlier underscored the government’s commitment to realizing the long-awaited national car project. Speaking at a plenary cabinet meeting at the State Palace on October 20, the President announced that the initiative to produce Indonesian-made cars had officially begun and would be completed within three years.

“We have started the initiative. We will have Indonesian-made cars in the next three years,” the President stated.

According to President Prabowo, the government has already allocated funding and land for the construction of a domestic vehicle manufacturing facility, which is currently being prepared by the development team.

The launch of the national car project marks a significant milestone in Indonesia’s industrial development, reflecting the government’s ambition to strengthen domestic manufacturing, enhance technological self-reliance, and expand the country’s position in the global automotive market.