Minister of Industry Prepares New Incentive Scheme for Indonesian Automotive Industry

KatadataOTO – The automotive industry in Indonesia is struggling in 2025. Especially for the sales of new cars which are far from expectations.

This has prompted the Ministry of Industry (Kemenperin) to create a policy to help manufacturers.

Currently, the Ministry of Industry is finalizing a proposed policy for incentives for the automotive sector. It will then be submitted to the Coordinating Ministry for Economic Affairs (Kemenko Perekonomian).

So that it can become part of the fiscal policy package in 2026. It is hoped to bring many impacts to the automotive industry.

Photo : KatadataOTO

“We at the Ministry of Industry see the automotive sector as too important to be ignored,” said Agus Gumiwang Kartasasmita, Minister of Industry, on the official Ministry of Industry website, Friday (14/11).

According to the Minister of Industry, the proposed incentive is designed to accelerate recovery. And strengthen the national automotive industry.

Because it is currently facing pressure on purchasing power in the domestic market. As well as the existing dynamics in the global market.

“Then there is the high multiplier effect, both forward and backward linkages of the subsector to other sectors in the national economy,” continued Agus Gumiwang.

Furthermore, the Minister of Industry admitted that he is currently designing the most targeted incentive and stimulus scheme.

Both to encourage demand and maintain production utility as well as protect industrial investment. The proposal will be officially discussed together through the Coordinating Minister for Economic Affairs.

“It also involves high labor absorption, so we decided to propose incentives for this sector,” the Minister of Industry added.

The Minister of Industry emphasized that the main focus of this incentive proposal is to protect workers from layoffs (PHK). And the creation of new jobs in the automotive sector.