ASIATODAY.ID, JAKARTA — Indonesia’s automotive landscape is set for a major transformation.
Volkswagen (VW), the renowned German automaker, will officially begin vehicle production in Indonesia in 2026, according to the Indomobil Group. This marks a significant milestone in the nation’s growing electric vehicle (EV) industry.
“Yes, next year, production will begin,” confirmed Andrew Nasuri, Director of Indomobil Group, when asked in Jakarta quoted on November 1, 2025.
Although he declined to reveal which model will be localized first, industry observers believe it will involve Volkswagen’s next-generation electric vehicles.
Volkswagen Supports Indonesia’s EV Ecosystem
The localization of Volkswagen’s production aligns with the Indonesian government’s agenda to accelerate industrialization and the development of the battery-based electric vehicle (BEV) ecosystem.
Minister of Investment and Downstreaming, Rosan Roeslani, recently disclosed that Volkswagen is among seven global automakers committed to establishing EV assembly plants in Indonesia. The others include BYD, Citroen, Aion, Maxus, Geely, and Vinfast.
“We already have BYD, Citroen, Aion, Maxus, Geely, Vinfast, and VW. They’ve all made commitments and are moving forward,” Rosan stated.
He added that the total investment from these seven brands reaches IDR 15.4 trillion (approximately USD 960 million), with a combined annual production capacity of 280,000 EV units. Construction began in 2024 and is expected to be completed by March 2025.
Indomobil Expands Production Base
As Volkswagen’s sole authorized distributor in Indonesia, through Garuda Mataram Motor, Indomobil Group is preparing the production infrastructure. One major step includes the acquisition of Nissan’s former factory in Indonesia, which had ceased operations in recent years.
According to Jusak Kertowidjojo, President Director of Indomobil Sukses Internasional (IMAS), the acquisition is part of Indomobil’s strategy to expand its manufacturing base and support multiple automotive brands under its portfolio.
“We aim to transform the facility into a multi-brand production hub that is efficient, competitive, and ready for the EV era,” Jusak said.
Strengthening Investment and Green Industry Goals
Volkswagen’s decision to begin production in Indonesia highlights growing global confidence in the country’s automotive investment climate, particularly in the electric vehicle sector.
Beyond technology transfer, the initiative is expected to generate thousands of new jobs and accelerate Indonesia’s transition toward a green and sustainable automotive industry.
With Indomobil Group’s strong commitment and Volkswagen’s entry into local manufacturing, Indonesia is poised to become Volkswagen’s key production hub in Southeast Asia, reinforcing the nation’s role in the global EV supply chain. (AT Network)
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