Indonesian President Prabowo Subianto has set an ambitious goal for the nation: to supply a very domestically produced automobile inside the subsequent three years. The statement, announced during Monday’s (20/10/25) plenary meeting of the cupboard, coincides with the primary anniversary of Prabowo-Gibran’s government.
The president noted that preliminary preparatory work is already underway, under which the federal government is allocating funds and preparing land for future production factories.
“It is not an achievement yet, but we have started preparatory work,” said President Prabowo. “In the next three years we will have a car made in Indonesia.”
He stressed that the country already produces largely domestically produced vehicles, pointing to the Indonesian-made “jeep” currently utilized by government and military officials. “Now our officials and officers are proud that they use jeeps made in Indonesia and not in other countries,” Prabowo noted, emphasizing how he uses the vehicle: “Your president drives an Indonesian-made jeep.”
The push for a national automobile program quickly gained support from the chief branch. Industry Minister Agus Gumiwang Kartasasmita confirmed that he has proposed designating the country’s auto program as a National Strategic Project (PSN), known in Indonesian as National Strategic Project.
“We definitely support this and have proposed transforming the national automobile program into PSN. I even have signed this proposal,” said Minister Agus. He believes that getting PSN status will significantly speed up the implementation of the project.
Although the Minister didn’t reveal the detailed production schedule of the national automobile, he emphasized that the PSN status would ensure the fast completion of all vital preparations, including the development of the factory. “When it becomes PSN, all the things shall be prepared, all the things shall be ready. So PSN status is what we’re fighting for now; now we have proposed it,” he concluded.
Despite the federal government’s optimism, industry analysts note that the three-year goal is extremely aggressive. Indonesia’s automotive sector is dominated by foreign manufacturers, and native players continually face challenges in meeting the high local component requirements (TKDN) needed to compete on cost and technology.
The initiative is a renewed national effort, paying homage to Timor’s controversial national automobile project within the Nineties, which ultimately failed as a result of the economic crisis and a World Trade Organization (WTO) dispute over protective tariffs. The current goal is to construct a powerful domestic automotive industry, reduce dependence on imports and strengthen Indonesia’s production capability within the region.
