Hybrid Car Incentives Deemed Insufficient, Reflecting Global Trends

KatadataOTO – The presence of hybrid cars in the Indonesian four-wheeled vehicle market has shown positive performance. For example, this was seen last July 2025.

According to data from the Association of Indonesia Automotive Industries (Gaikindo), the distribution of hybrid cars from factory to dealer (wholesales) reached 6,258 units last month.

The figure above increased by about 4.3 percent compared to June 2025, which was only 5,998 units.

In addition, the wholesale number of hybrid cars in July was the highest so far in 2025, as previous months were in the range of 4,000 units.

Photo : Daihatsu

Based on the facts above, Gaikindo has asked the government to consider additional relaxations for four-wheeled hybrid vehicles.

“Although the incentives are small, it turns out there is a lot of interest. It would be much better if we review Government Regulation 73,” said Kukuh Kumara, General Secretary of Gaikindo, in Jakarta some time ago.

For your information, Government Regulation (PP) Number 73 of 2019, which was adjusted to PP Number 74 of 2021, regulates the Luxury Goods Sales Tax (PPnBM) rates for hybrid cars.

Under this regulation, hybrid cars are subject to a PPnBM rate of 15 percent for engine capacities up to 3,000 cc, with a tax base ranging from 40 percent to 46 percent.

Meanwhile, under a similar regulation, pure electric cars are exempted from PPnBM, reduced from 15 percent to 0 percent.

One of the reasons Gaikindo is urging the government to review the policy on hybrid cars is based on the shifting trend of vehicles in the global market.

Currently, several countries are said to be no longer maximizing Battery Electric Vehicles (BEV), but are starting to focus on developing hybrids.