Jakarta, hitclubapk3 Indonesia
—
Yannes Martinus Pasaribu, an automotive observer from the Bandung Institute of Technology (ITB) said that the government is said to be preparing a number
incentives
to excite
national automotive market
.This policy may be valid for a period of up to 10 years.
According to him, this provision was a proposal from manufacturers who are members of the Indonesian Automotive Industry Association (Gaikindo) as well as researchers from a number of universities in Indonesia.
“In 2026, the government seems to have outlined a national automotive policy that binds all elements for the next 10 years,” said Yannes when contacted, Wednesday (24/12).
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He explained that this policy package might target domestically produced automotive products, especially conventional to battery-based electric cars and motorbikes with high local content or TKDN.Yannes emphasized that the policy was a direction from the president to strengthen the national automotive industry.
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“The President has set an explicit mandate to realize domestic branded vehicles based on domestic IP in the EV car and motorbike segments, by implementing an anti-CBU import strategy and requiring deep manufacturing investment in local factories to affirm the sovereignty of our industry,” he said.
Meanwhile, he said, the Coordinating Ministry for Economic Affairs is considered able to provide support by selectively distributing fiscal space only to EV manufacturers that meet the minimum TKDN threshold of 40 percent.
“At the same time implementing a schedule for reducing incentives for ICE and HEV so that the technological transition can move in the direction of the President’s mandate. The Minister of Finance himself will be fiscally disciplined by withholding new taxes, maintaining purchasing power, and ensuring that every measurable, time-limited incentive is regularly evaluated strictly, conditional through PPnBM adjustments and gradual tightening of incentives for vehicles with low TKDN,” said Yannes.
“Then, the Minister of Industry prepared a temporary transition bridge for the entry-level segment with a real TKDN of ≥75 percent, especially LCGC, so that the supply chain and existing sunset industry jobs are maintained for 2 years. Preparation of the local BEV, battery, powertrain and controller ecosystem is ready (the semiconductor industry is built),” he said again.
Yannes’ current position said that automotive industry players can only wait for the policy to be realized.
“So, we need to wait to see what the final results of the high level policy package above will be regarding non-CBU regulations + high real TKDN red carpet + LCGC bridge,” he said.
“Essentially, whatever decision, whether at the PMK level or the 2026 Presidential Decree, we just have to wait,” added Yannes.
The government and Gaikindo tried to be contacted
hitclubapk3Indonesia.com
, until now has not provided a response.
Previously, the government had different views regarding automotive incentives, between the Coordinating Ministry for the Economy and the Ministry of Industry.
Last month, the Coordinating Ministry for the Economy, through the minister, Airlangga Hartarto, openly said that the government would not issue automotive incentives for 2026, even though the Minister of Industry, Agus Gumiwang, is fighting for this.
“There will be no (automotive) incentives next year,” said Airlangga last month.
(ryh/mik)
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