Jakarta (ANTARA) – Industry Minister Agus Gumiwang Kartasasmita stated that the government will prioritize electric vehicle (EV) incentives for national brands, as part of broader efforts to strengthen the domestic automotive industry.”We will prioritize national brands,” Minister Agus told reporters following the National Working Meeting of the Industrial Estate Association (HKI) in Jakarta on Thursday.However, the government has yet to detail specific criteria for the policy, including whether the definition of “national brands” refers strictly to Indonesian-owned companies or includes foreign manufacturers producing vehicles with high domestic component levels (TKDN).The priority aligns with the 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF), which integrates national car and motorcycle development into the country's broader industrialization agenda.According to government policy documents reviewed on July 30, 2026, the national car project aims to enhance automotive industry independence, strengthen domestic supply chains, boost manufacturing value-add, and create high-quality local jobs.To support the national automotive ecosystem, the government plans to establish a 412-hectare national car industrial area in Subang, West Java, which entered the pre-feasibility study and prototype pre-design phase in 2026.Funding for the medium-term national car initiative is expected to involve sovereign investment agency Danantara alongside private sector partners and cross-ministerial cooperation.While the national car project remains in early planning stages, the electric two-wheeler initiative is already gaining operational traction.Focused on specialized operational and tactical needs, the national electric motorcycle program—led by state defense firm PT LEN—reached a key milestone in April 2026 with the national distribution of 3,000 units under its initial deployment phase, with phase two contracts nearing finalization.Despite the ambitious push, officials acknowledge ongoing structural hurdles, including achieving viable economies of scale, accelerating technology transfers, and ensuring domestic EV products remain competitive on the global stage.