December 26, 2025 | 10:18 am
TEMPO.CO, Jakarta - The national electric car project is to receive government incentives and support from Danantara. It is rife with conflicts of interest.
THE national car is a recurring dream of the Indonesian government. Appearing in every regime, proposals for a national car end in uncertainty and then fade away. During Prabowo Subianto’s administration, the plan to develop a national car raised many questions because people without experience managed it, and it had deep roots in cronyism.
On a number of occasions, Prabowo has said that Indonesia will have its own domestically produced car within three years. Land for the factory is being prepared, as are incentives and facilities for those involved in the project. Recently, plans have emerged to stop the fiscal incentives that have long been given to electric cars. These incentives will be transferred to the national car project.
In the Prabowo era, the national car is not a singular project because there are a number of brands claiming to be national cars. The first is the Maung, which is actually a tactical vehicle produced by Pindad. A Maung, modified into a limousine, is used by Prabowo as an official vehicle. Next year, Prabowo will make it compulsory for all ministers and their staff to use Maungs as their operational vehicles.
After the Maung, came the Indigenous Indonesian Car, or i2C. This is an electric sports utility vehicle developed by Teknologi Militer Indonesia (TMI). In the Joko Widodo era, this company’s name appeared as an entity under the Defense Resources Potential Development Foundation, which was involved in the supply of weapons worth Rp1,760 trillion to the Ministry of Defense, which at the time, headed by Prabowo as Defense Minister.
As the developer of the national electric cars, TMI is set to receive incentives such as exemptions from the luxury goods sales tax or import duties, benefits previously enjoyed by foreign electric vehicle manufacturers. Other privileges TMI will enjoy include national strategic project (PSN) status and financial support from the Daya Anagata Nusantara Investment Management Agency, or Danantara.
This is precisely where the problem lies. The national strategic project status, fiscal incentives, and funding from Danantara risk going to waste, as TMI’s capacity and capability as an electric vehicle manufacturer remain unproven. Beyond its lack of production lines, it remains unclear what technology is actually mastered by this company, which previously served merely as a broker. If TMI ultimately ends up purchasing licenses or patents from other factories, does its product truly deserve “national car” status?
And there is an aroma of collusion around this company because it is staffed by people close to the President. When its deed of incorporation was first revealed, the names Glenny Kairupan, Angga Raka Prabowo, and Prasetyo Hadi appeared among TMI’s leadership. They are high-ranking officials of Gerindra, the party founded by Prabowo. Currently, Prasetyo Hadi and Angga Raka hold cabinet positions, while Glenny serves as the Chief Executive Officer of Garuda Indonesia. Consequently, a national car project receiving such extensive government facilities is highly susceptible to conflicts of interest.
As a president who should comply with the principles of good governance, Prabowo should forget his dream of a national car. There are far more pressing economic issues that demand resolution rather than pouring facilities and resources into this pseudo-nationalist project.
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