Jakarta, huutoanland Indonesia
—
Coordinating Minister for Economic Affairs
Airlangga Hartarto
stated that the government had provided incentives for the Indonesian automotive sector amounting to IDR 7 trillion in the last two years.
He did not mention the type of incentive in question, but it is known that the government has released a number of incentives for the automotive sector, one of which is a reduction in a number of tax components on imported electric cars which starts in February 2024 and ends December 31 2025.
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Through this policy, CBU electric cars receive zero percent duty incentives instead of 50 percent and zero percent PPnBM from 15 percent.The total tax paid to the central government for CBU electric cars is only 12 percent from the supposed 77 percent.
However, manufacturers still have to fulfill the requirements, namely they are required to provide a bank guarantee and a 1:1 production commitment with the same minimum specifications.
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Apart from that, the government has also disbursed fresh funds related to subsidies for the purchase of electric motorbikes amounting to IDR 7 million per unit, the quota of which will be completely absorbed by the end of 2024.
“The government is distributing incentives to the automotive sector of IDR 7 trillion in two years,” said Airlangga, citing his speech on the Indonesian Chamber of Commerce and Industry’s YouTube channel, Thursday (4/12).
He said the policies made had a big impact on Indonesia.This is proven by the commitment of various automotive brands to invest in factories in the country.
Airlangga explained that they are BYD with an investment of IDR 11.2 trillion for a production capacity of 150 thousand units per year.The construction progress of the BYD factory is said to have reached 90 percent.
Then Chery with an investment value of IDR 5.2 trillion, Wuling IDR 9.3 trillion for assembly and IDR 7.5 trillion for batteries, Vinfast IDR 3.7 trillion, and Hyundai which added an investment of IDR 20 trillion.
“And that’s why several factories have
commit
to build,” he said.
Airlangga further said that sales of electric cars in Indonesia will experience a significant increase during 2025. This means that many people are starting to move away from fuel-based cars.
Based on data up to October 2025, sales of electric cars rose 18.27 percent to 69,146 units compared to the 2024 period.
Even though investment and sales are increasing, he said sales of conventional-based vehicles remain dominant.
“The ICE (internal combustion engine) market is still large, 80 percent,” said Airlangga.
(ryh/fea)
[Gambas:huutoanland Video]
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