Economist Reveals Alternative Automotive Incentives to Maintain EV Trend

KatadataOTO – The government has not yet released the automotive incentives for 2026. The subsidy is still awaited by various parties, especially environmentally friendly vehicle manufacturers.

In the previous year, automotive incentives proved to be one of the main factors attracting consumers to buy electric cars.

Electric car sales are slowly growing with the presence of many new models. Special incentives for imported vehicles that meet the requirements also play a role in reducing car selling prices.

However, until now there has been no information on the continuation of the incentives. Analysts believe there are actually alternatives that can be done to maintain the positive trend of environmentally friendly vehicles.

Photo: BYD

“At the policy level, the government could actually shift the focus from cash subsidies to non-cash incentives and regulatory certainty,” said Josua Pardede, Chief Economist of Permata Bank to KatadataOTO recently.

The policy in question is similar to the exemption from the odd-even rule for electric car users in the Jakarta area.

Other regulations could be implemented, especially in the Capital City, such as ease of finding parking areas, and affordable and evenly distributed charging infrastructure.

Besides incentives, regulatory certainty is considered to be an attraction in itself. Although it seems it will not be as significant as providing subsidies.

“If the automotive stimulus is not provided, car sales this year are likely to be closer to a flat or slightly increasing scenario, not a surge,” said Josua.

This is due to the limited purchasing power of the public, coupled with installment constraints, and price sensitivity in the main segments.

With the possibility of price changes for electric cars, especially imported units like those from BYD, a shift in interest towards environmentally friendly vehicles may occur this year.

Photo: KatadataOTO

For your information, a number of brands are using the imported electric car incentive as an initial stage of vehicle sales before carrying out local assembly.

Besides BYD, VinFast is also a recipient of the subsidy. Currently, their factory has started operations and will produce the VF 3, followed by other models.

Citroen also received the aid and has started locally assembling the e-C3 electric car at the production facility owned by the Indomobil Group.