Assessing the Continuation of Imported Electric Vehicle Incentives in Indonesia Next Year

KatadataOTO – The import incentive program for electric cars or EVs (Electric Vehicles) is scheduled to end at the end of 2025. This is regulated in the Minister of Finance Regulation Number 135 of 2024.

In the third article, it is stated that the PPnBM (Luxury Goods Sales Tax) for imported electric cars is valid for the tax period from January to December 2025.

BYD is one of the manufacturers enjoying this relaxation. Currently, all of its electric vehicles are still imported as CBU (Completely Built Up) from China.

The electric car import incentive successfully contributed to BYD's debut in Indonesia. Although it helps boost EV sales, this regulation may not be continued in 2026.

Photo : KatadataOTO

“We have socialized this to the whole world, meaning we have called all Indonesian Embassies (KBRI) in countries that have a car industry,” said Rachmat Kaimuddin, Deputy for Coordination of Basic Infrastructure at the Coordinating Ministry for Infrastructure and Regional Development of the Republic of Indonesia in Jakarta recently.

According to Rachmat, the government has provided an opportunity for manufacturers who want to enjoy the electric car import incentive in Indonesia.

“So we have opened the door, but the doors must be closed. Otherwise, it will be CBU forever,” he said.

For your information, starting in 2026, brands receiving the electric car incentive must carry out local production equivalent to the number of fully imported units.

BYD's assembly facility in Subang, West Java is currently under construction and is targeted to operate early next year.

Meanwhile, GAC Aion has already started operating its factory and locally assembling the vehicle lines that previously received import subsidies from the government.

These brands are given two years to import electric cars and provide a bank guarantee equivalent to the cost of import duties and PPnBM.

If a producer is unable to start production by 2026, they will be fined.

Photo : Courtesy

Previously, the electric car import incentive regulation was stipulated in the Minister of Industry Regulation Number 6 of 2023 and was scheduled to end in 2024.

However, due to several considerations, the government eventually extended the validity period of the electric car import incentive. 

Following this regulation, BYD will locally assemble its entire vehicle lineup, namely the Dolphin, Atto 3, M6, Seal, and Sealion 7.