Subang, W. Java. Indonesia is accelerating efforts to build a domestic automotive industry hub, with Defense Minister Sjafrie Sjamsoeddin on Wednesday reviewing the progress of the country’s National Car project in Subang, West Java.

The strategic project is designed to become an integrated automotive manufacturing center with production capacity targeted at 300,000 vehicles annually, as Indonesia seeks to strengthen industrial self-sufficiency and electric vehicle development.

Sjafrie, accompanied by Deputy Indonesian Military Commander Gen. Tandyo B. Revita and Defense Facilities Agency head Air Marshal Yusuf Jauhari, said the project would play a key role in supporting national industrial resilience and technological capabilities.

“The National Car area is a strategic installation that plays an important role in strengthening national industry, technological mastery, and the development of an integrated manufacturing ecosystem,” Sjafrie said, according to state news agency Antara.

The government plans to develop the 539-hectare site into more than just an assembly plant. The complex is expected to include vehicle engineering centers, testing facilities, and research and development operations.

Officials estimate the project could create around 2,000 jobs for engineers, technicians, and university graduates.

Pindad President Director Sigit Santosa said construction would take place in three phases between 2026 and 2028.

The initial phase will focus on developing 60 hectares of land, with production capacity targeted at 50,000 vehicles annually by 2028. Capacity is expected to gradually increase to 300,000 units per year in later stages.

“We have invested in human resource development for several years, ranging from planners and technicians to experts, to support the large-scale development of this industry,” Sigit said.

The project forms part of Indonesia’s broader push to reduce dependence on imported vehicles and foreign automotive components while building a stronger domestic supply chain.

The government also sees the initiative as a key platform for advancing electric vehicle technology and accelerating technology transfer from global automotive manufacturers.

Located in Subang, an emerging industrial hub in West Java, the project is expected to support broader regional economic development and strengthen Indonesia’s position in Southeast Asia’s automotive and EV manufacturing sector.

The involvement of state-owned defense manufacturer Pindad highlights the government’s strategy of using state enterprises to drive industrial development, technological capability, and long-term economic value creation.