Jakarta, huutoanland Indonesia
—
The government has once again promised to provide stimulus for the domestic automotive industry, which is generally sluggish this year.Minister of Industry Agus Gumiwang Kartasasmita said he was formulating a scheme
incentives
for 2026 which will be submitted to the Coordinating Minister for Economic Affairs Airlangga Hartarto.
Agus said this new incentive plan was driven by the success of the stimulus in increasing vehicle sales during the Covid-19 pandemic.
“The Ministry of Industry is in the process of formulating a stimulus incentive policy for the automotive sector which will later be submitted to the coordinating minister for the economy (Airlangga),” explained Agus in a meeting with the media at his office, Thursday (13/11).
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The automotive industry is currently weak.Gaikindo data shows car sales (
wholesalers
) in January-October 2025 fell 10.6 percent to 635,844 units compared to the same period last year which reached 711,064 units.
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Weakness in 2025 extends the previous year’s downward trend.Gaikindo recorded sales in 2024 of 865,723, while in 2023 it reached 1,005,802 units and in 2022 it reached 1,048,040 units.
According to Agus, recovery in the automotive industry needs special attention because apart from absorbing workers, this industry also creates new jobs.
“We hope they will get attention because they protect workers and create new jobs. So there must be special attention, at least there is a fiscal policy for 2026 so that the automotive sector can
rebounding
much faster,” he explained.
Previously the government had issued a stimulus, one of which was Government Borne Sales Tax (VAT DTP) in 2021 for cars under 1,500 cc with
local purchases
minimum 70 percent and a 1,500-2,000 cc car with
local purchases
at least 60 percent.
The government is currently encouraging more electric vehicles, which have minimal local production, with various incentives including VAT DTP and free import duty on CBU imports for electric cars.
Incentives for electric motorbikes were also given in 2023 but were stopped in 2024 because they did not receive public interest.
According to Agus, the proposal for further incentives for electric motorbikes will be pushed again for 2026. This proposal is still awaiting approval from the Coordinating Ministry for the Economy.
“I have conveyed the electric motorbike many times, we have proposed it since January 2025, and in 2025 it will be completed (not yet given),” he explained.
“For 2026 it will be proposed again, but once again, the ball is not in our court,” he concluded.
(iqb/fea)
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