Electric Car Incentives Stopped, Government Focuses on National Cars

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Subang, huutoanland Indonesia

The validity period of the gift
electric car incentives
will expire on December 31, 2025. This decision is an effort to revive the domestic automotive industry.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the incentive budget would be diverted to revive the domestic automotive industry, including the national car program.
“Where are we going to divert the electric car incentive budget? Of course we have a national car plan (focusing on national cars), so that we can actually learn from VinFast,” said Airlangga in Subang, West Java, Tuesday (16/12).
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For your information, based on Minister of Finance Regulation (PMK) Number 12 of 2025, the government has provided a 10 percent VAT DTP incentive for electric cars
completely knocked down
(CKD).
Then PPnBM DTP for imports of electric cars in full or
completely built up
(CBU) and CKD of 15 percent, and exemption from import duties on CBU electric car imports.
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Airlangga explained that automotive companies that have enjoyed incentives so far are required to build factories in Indonesia.
“The government has provided various incentives, so they just have to do it (set up a factory),” said Airlangga.
“Existing, and VinFast can do both (investing and building a factory). So others (other electric car manufacturers), who don’t have factories but enjoy incentives, should join in like VinFast,” he said.
Electric car incentives were previously enjoyed by the automotive company BYD.BYD is one of six automotive companies that enjoy incentives for imported Completely Built-Up (CBU) electric cars in Indonesia along with VinFast, Geely, Xpeng, Aion, Citroen, Maxus, and GWM Ora.
(ryh/mik)
[Gambas:huutoanland Video]

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