Jakarta, huutoanland Indonesia
—
Field Coordinating Ministry
Economy
assesses that the automotive industry is now ‘quite strong’ judging by sales of electric cars which increased to 69,146 units during January-October 2025 and the entry of various new investments.
“We think that the automotive industry is currently quite strong. This is proven by sales of four-wheeled electric vehicles increasing significantly to 18.27 percent of the market share in 2025 and investment for KBLBB (Battery Based Electric Motor Vehicles) of IDR 5.66 trillion in 2025,” said ministry spokesperson Haryo Limanseto, as reported by Antara, Sunday (30/11).
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The subordinate of the Coordinating Minister for the Economy, Airlangga Hartarto, also said that conventional vehicles still dominate the market at around 80.6 percent.On the other hand, motorbike sales are also said to show growth from the domestic and export side.
He said the automotive industry ecosystem had moved stably and competitively.Based on these conditions, the Government assesses that policy space can be placed more strategically.
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“The question is, are incentives still needed if an industry is strong enough? We see that the existing policy space can be considered to strengthen other priority sectors that need greater support, while maintaining the positive momentum of the automotive industry,” he said.
There are no proposals for automotive incentives yet
Haryo also revealed that until now his party has not received an official proposal regarding automotive incentives for 2026 from the ministry that oversees this sector.
“Currently we have not had any further discussions and have not received incentive proposals from sector development ministries/institutions,” he said.
However, Haryo stated that his ministry would still open up room for discussion if there were new proposals.
The domestic automotive supervisor, the Ministry of Industry, previously said it was finalizing a proposal for automotive incentives that would be submitted to the Coordinating Ministry for the Economy as part of the 2026 fiscal policy package. Minister of Industry Agus Gumiwang Kartasasmita said the automotive sector was too important to ignore.
”
Multiplier effect
high, good forward and rear linkage (
backwards
and
forward linkage
) subsector to other sectors in the national economy, and in which there is also high labor absorption, we have taken the decision to propose incentives for this sector.Almost similar to incentives
automotive during Covid 19,” said Agus in an official statement, Thursday (13/11).
Haryo explained that the direction of government policy regarding automotive next year will focus on strengthening local value chains, Domestic Component Level (TKDN), developing electric vehicle charging infrastructure, as well as support that ensures technology transfer and increasing national production capacity.
The government is said to remain committed to maintaining the automotive sector as an important pillar of Indonesia’s manufacturing industry.Discussion of automotive incentives for 2026 needs to look at the latest developments in the national industry.
(fea)
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