Source: Bloombergtechnoz.com | January 26, 2026

Minister of Industry Agus Gumiwang Kartasasmita stated that tax incentives for hybrid and electric cars in 2026 are still under discussion. His office is currently reviewing the plan technically with relevant parties.

“It’s still under discussion,” Agus said when met at the Parliament Complex on Monday (January 26, 2026).

When asked further about the incentive plan discussed with Finance Minister Purbaya Yudhi Sadewa, Agus did not elaborate.

“We’ve discussed it, and the technical details have been discussed,” Agus said.

Meanwhile, Jongkie Sugiarto, Chairman I of the Association of Indonesian Automotive Industries (Gaikindo), stated that his office is currently awaiting an update from the relevant ministries regarding the incentives for four-wheeled vehicles.

“There’s no update yet. We’re waiting for the update.” Jongkie told Bloomberg Technoz on Monday (January 26, 2026).

Previously, Purbaya stated that he had not received a letter from the Ministry of Industry regarding automotive incentives.

“Yes, perhaps the letter hasn’t reached me yet. I haven’t read the letter, so I don’t know the details,” Purbaya said when met at the opening of trading at the Indonesia Stock Exchange on Friday (October 2, 2026).

Purbaya emphasized that the Ministry of Finance will currently discuss the incentives eagerly awaited by automotive manufacturers, especially those producing hybrid and conventional cars.

Meanwhile, Ministry of Industry Spokesperson Febri Hendri Antoni Arif revealed that Agus had written to the Ministry of Finance regarding automotive incentives for 2026.

“Minister Agus Gumiwang Kartasasmita today sent a letter to the Minister of Finance regarding the proposed 2026 automotive incentives,” Febri said at the IKI December 2025 press conference on Tuesday (December 30, 2025).

Regulated in Detail

Agus himself has provided a leak regarding the planned automotive incentives for 2026, which have also been proposed in a letter to Finance Minister Purbaya Yudhi Sadewa.

Agus stated that automotive incentives for 2026 would be more detailed and specific. He hinted that the incentives would differ from those implemented in previous years.

“There are slight differences. What we’re proposing here is more detailed than when we dealt with Covid-19. From the segment, technology, and TKDN [domestic component level],” Agus said on Wednesday (December 31, 2025).

According to Agus, the incentives will also mandate a number of conditions that companies must meet. The government, he said, will also regulate price limits for each vehicle segment.

“In this proposal, we set prices; the prices we apply for each segment so they can benefit, and of course, what we must emphasize is that we really care about consumers,” he said.

“The most important thing for the country is cost and benefit. Of course, the Ministry of Industry doesn’t want to submit a proposal that would leave the country short or incur a deficit.”

Recently, rumors have circulated that intensive discussions regarding these incentives are underway. The discussions are being held between the Association of Indonesian Automotive Industries (Gaikindo) and the Ministry of Industry, and involve all vehicle manufacturers and sole brand holders (ATPAMs).

In the document received by the editors, the incentives, later referred to as stimulus, are proposed to be divided into two options. The Ministry of Industry will decide on one of the two options and will announce it after the Christmas holidays this year.

The first option includes a 100% Luxury Goods Tax (PPnBM) exemption for ICE and Hybrid vehicles under Rp275 million, Hybrid and BEV vehicles under Rp375 million, and Commercial Pickups under Rp275 million.

For BEV incentives, the proposed incentives are based on battery usage. NMC (Nickel Manganese Cobalt) batteries will be subject to a 100% VAT discount, and LFP (Lithium Iron Phosphate) batteries will be subject to a 6% VAT discount after a 50% incentive. Meanwhile, the second option focuses on a 100% VAT exemption for ICE vehicles under Rp275 million, Hybrid and BEV vehicles under Rp375 million, and Commercial Pickups under Rp275 million. The BEV incentive scheme remains the same as the first option.