Minister of Industry Prepares New Incentive Scheme for Indonesian Automotive Industry

While also maintaining the sustainability of automotive industry investment in the country. So that not many companies pack up and leave.

“At least through the 2026 fiscal policy, the automotive sector can grow much faster. Contributing more to manufacturing growth and national economic growth,” stressed Agus Gumiwang.

The Minister of Industry revealed that the automotive industry is one of the mainstay sectors with a large contribution to the manufacturing Gross Domestic Product (GDP), exports, and labor absorption.

Photo : Suzuki

Investment in this sector is estimated to have reached around Rp 174 trillion. And the absorption of nearly 100 thousand direct workers in the four-wheeled, two-wheeled, and three-wheeled vehicle industries.

The Minister of Industry emphasized that the formulation of the incentive proposal for 2026 also considers the ongoing policy transition. Especially related to low-emission vehicles and electrification.

Currently, the Value Added Tax Borne by the Government (PPN DTP) incentive for battery-based electric vehicles and some buses has been regulated through a fiscal policy that is valid until 2025.