Indonesia promotes all auto technologies to cut emissions

Indonesia’s industry minister has announced that the government will support all automotive technologies as part of its strategy to reduce emissions and enhance national energy security. Speaking at the Gaikindo Indonesia International Auto Show (GIIAS) 2026 in Tangerang, Banten, Agus Gumiwang Kartasasmita emphasized that no single technology should be favored over others in the pursuit of environmental goals. The minister stated that battery electric vehicles, hybrid models, increasingly efficient internal combustion engines, and the use of biodiesel and bioethanol all play critical roles in reducing emissions and securing energy independence. The minister highlighted that the primary challenge for Indonesia is not predicting which technology will dominate the market, but rather ensuring that the domestic automotive sector maximizes economic gains from technological advancements. To achieve this, the government is working to bolster the national automotive industry by increasing local component manufacturing, boosting value-added activities, and expanding domestic production capabilities. This approach aims to prevent reliance on foreign imports and promote sustainable growth within the sector. Agus stressed that transitioning to greener technologies must be paired with broader industrial development. Without such efforts, he warned, the nation could simply replace one type of import with another, failing to achieve true transformation. “A transition that is not accompanied by deeper industrial development will only shift our dependence from one form of imports to another,” he said. This perspective underscores the government’s commitment to a balanced and inclusive strategy for the automotive sector. The minister also noted that the shift toward more environmentally friendly technologies requires careful planning and coordination. He called for collaboration among stakeholders, including manufacturers, researchers, and policymakers, to ensure that the transition supports both environmental objectives and economic progress. By fostering innovation and investment in multiple technologies, Indonesia aims to create a resilient and diversified automotive industry capable of meeting future challenges. In addition to promoting diverse technologies, the government is prioritizing incentives for electric vehicle (EV) adoption, particularly for national automotive brands. These measures are intended to encourage domestic companies to develop and produce EVs, thereby contributing to emission reductions and enhancing energy security. Meanwhile, plans are underway to launch a national electric motorcycle initiative, led by former President Prabowo Subianto, further reinforcing the government’s focus on sustainable transportation solutions. The push for a multi-technology approach reflects Indonesia’s broader strategy to address climate change while supporting economic growth. By embracing a range of solutions, from traditional internal combustion engines to renewable fuel alternatives, Indonesia seeks to balance immediate environmental needs with long-term industrial development. This strategy aligns with global trends toward decarbonization, while also addressing the unique economic and infrastructural realities of the country. As the automotive sector evolves, the success of these initiatives will depend on continued investment, policy support, and public engagement.