Jakarta. Industry Minister Agus Gumiwang Kartasasmita reaffirmed on Tuesday that all vehicles operating in Indonesia -- including passenger cars, commercial vehicles, and mining trucks -- must comply with the Euro 4 emission standard, in line with national environmental regulations.

Speaking at the Investor Daily Roundtable, hosted by B-Universe Meia Holdings in Jakarta, Agus said manufacturers are legally required to produce Euro 4-compliant models. The discussion, hosted by B-Universe Executive Chairman Enggartiasto Lukita, centered on “Industrial Challenges in Protecting National Industries, Especially in the Mining Sector.”

“The regulation is clear -- all vehicles must meet the Euro 4 emission standard,” Agus said. “Manufacturers of all types of vehicles, including commercial and heavy-duty trucks, must ensure compliance.”

The minister noted that while most on-road vehicles already meet Euro 4 standards, many off-road mining vehicles, particularly haul trucks, remain non-compliant.

“I’ve received many reports that most mining trucks are still Euro 2 or Euro 3,” he said.

Agus described this as both an environmental concern and a missed opportunity for domestic manufacturing, since many such trucks are imported.

“This is unfortunate -- our national industry should be able to meet such demand,” he added.

To address the issue, the Ministry of Industry is coordinating with other agencies to ensure emission standards also apply to off-road and mining vehicles.

“We are working closely with other ministries to guarantee that both on-road and off-road vehicles comply with Euro 4,” Agus stressed.

New Regulation on Local Content Requirements
At the same event, the minister also announced a new regulation on domestic component levels (TKDN), enacted under Ministerial Regulation No. 35/2025 on “Provisions and Procedures for TKDN and Company Benefit Weight (BMP) Certification.” The rule, effective since September 11, 2025, replaces the outdated 2011 framework and aims to strengthen local industrial participation in public procurement.

“The principle is simple -- every rupiah of public money spent must benefit domestic industry,” Agus said. “Procurement using state or regional budgets must prioritize locally produced goods and services.”

Under the revised system, government institutions are required to buy local products if their TKDN value exceeds 40 percent, and imports of similar items are prohibited.

To make compliance easier, the government is expanding the national e-Catalogue to include more locally certified products, simplifying access for procurement officials. Agus said the certification process itself would also be streamlined.

“The process for calculating and issuing TKDN certificates must become cheaper, simpler, and faster,” he said, adding that the new system would include value-added incentives to encourage domestic innovation.

The policy, he said, reflects Indonesia’s broader push to boost manufacturing competitiveness, create jobs, and reduce import dependence while supporting the nation’s transition toward a more sustainable and self-reliant industrial base.