President Prabowo Subianto inaugurated on Thursday the country’s first electric vehicle (EV) assembly plant for large commercial vehicles in Magelang, as Southeast Asia’s largest economy steps up efforts to localize production and reduce fuel imports. With the inauguration of the facility, operated by PT VKTR Sakti Industries, a subsidiary of PT VKTR Teknologi Mobilitas, Indonesia now has the capacity to assemble up to 10,000 electric buses annually.
“We must move toward clean, renewable energy. Electrification is one way to reduce reliance on fossil fuels,” Prabowo said during the ceremony.
Regional administrations, including Jakarta and Central Java, have placed orders for dozens of electric buses for public transit systems, providing early demand for the plant’s output.
“This is something we should be proud of, that we already have a bus and truck industry. Regional leaders who are not ordering domestic products should do so, and the military must also prioritize local purchases,” he added. “If Japan has Isuzu and Hino, and Korea has Hyundai and Daewoo, I hope that in the coming years we will see VKTR emerge as one of Indonesia’s champions.”
Before the inauguration, Prabowo toured the plant’s production lines, which assemble a range of Evs from trucks to buses intended for public transportation and logistics, including units for Jakarta’s Transjakarta network. The assembly process covers multiple stages, from chassis assembly and welding to main assembly, body finishing, and final inspection. The Magelang facility currently meets a local content requirement of more than 40 percent for buses. The company aims to raise this to 60 percent this year and 80 percent by 2028, according to VKTR president commissioner Anindya Bakrie.
“Electrifying buses and trucks could save Indonesia up to US$5 billion annually in fuel subsidies,” Anindya said. When VKTR debuted on the Indonesian Stock Exchange in 2023, it primarily operated as a trading company importing completely built-up (CBU) K9 electric buses from China’s EV giant BYD for use by Transjakarta, before expanding into assembly.
The facility adds to Indonesia’s growing EV manufacturing base, with new plants by BYD and VinFast in Subang expected to begin operations later this year. Since 2019, Indonesia has sought to position itself as a global EV hub by leveraging its vast nickel reserves, supported by tax incentives to attract investment and accelerate domestic adoption.
The President renewed the electrification push earlier this month as global oil prices surged above $100 per barrel amid the United States–Israeli war on Iran, now in its fifth week, far exceeding the country’s 2026 budget assumption of $70. Prabowo, who has long promoted biofuels as a path to energy security, is now calling for a broader transition to EVs and electric stoves. His plans include forming a task force, targeting up to 100 gigawatts in additional solar power capacity, and converting 120 million motorcycles within four years.
Shifting from fossil fuels to electricity for households and transportation is a logical response to Indonesia’s dependence on energy imports amid the Middle East crisis. However, experts note that the success of electrification will depend on sustained policy support.
April 10, 2026, The Jakarta Post
(https://www.thejakartapost.com/business/2026/04/10/prabowo-inaugurates-ris-first-electric-bus-truck-assembly-plant.html)