SAIC Urges Ministry of Industry to Extend Electric Vehicle VAT Incentive
11 October 2025, 09:00 WIB
Car sales in Malaysia surpassed 800,000 for the first time, supported by various government policies.
“That's why I say, we need a comprehensive grand design. So that when people come, their investment is long-term,” said Kukuh Kumara, Secretary General of Gaikindo, when met in South Jakarta, Saturday (25/1).
He also hopes that government policies supporting the automotive industry, such as incentives, can be consistent and apply in the long term.
Then, the incentives should not only focus on BEVs (Battery Electric Vehicles) but also other types such as HEVs (Hybrid Electric Vehicles). So that it can provide significant assistance in boosting various passenger vehicle segments.
“We will maintain and develop everything. ICE, Hybrid, PHEV, EV, flexy engine, we can work on all of them here and we have the resources,” said Kukuh.
Although it has not yet surpassed Indonesia's car sales, the rapid increase in Malaysia deserves attention. There is a chance that Indonesia's current position could be replaced by Malaysia.
Malaysia's car sales are also helped by the presence of Proton, the national car in the neighboring country. Proton was once sold in Indonesia before finally leaving in 2019 due to being uncompetitive.
Meanwhile, Indonesia does not yet have a national car, but has locally assembled several Daihatsu models for export, including to Malaysia.
Then, a brand from the Geely Group entered Indonesia using the name Aletra, which is claimed to be an Indonesian brand. Aletra has built a development center in Alam Sutera and will assemble cars locally with various adjustments specifically for the Indonesian market.
The hope is that this can help national car sales and accelerate the adoption of electrification in the country.
Finally, there is an additional three percent incentive for hybrid cars from the government. It is hoped that this series of policies can significantly boost sales and maintain Indonesia's position as the leader in car sales in ASEAN.
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