Hybrid Car Incentives Will Not Exceed EV, Still 3 Percent

KatadataOTO – The government provides incentives for hybrid cars for a number of models that have met the requirements, one of which is a minimum of 40 percent TKDN (Local Component Level).

In comparison, hybrid car incentives are given in the form of a three percent tax cut. Meanwhile, electric cars get a larger one at 10 percent.

Some manufacturers had wanted an increase in hybrid car incentives to make their prices more competitive.

Because HEV (Hybrid Electric Vehicle) is considered a suitable bridge for the public before switching to pure electric cars.

Photo : PT SIS

However, it seems the government will not increase the amount of hybrid car incentives due to certain considerations.

“Hybrids have the same supply chain (involving gasoline). Plus, there's a battery (component),” said Rachmat Kaimuddin, Deputy for Basic Infrastructure Coordination at the Coordinating Ministry for Infrastructure and Regional Development of the Republic of Indonesia in Jakarta some time ago.

He revealed that reducing the use of fuel oil is currently one of the ways being taken to pursue the government's decarbonization target.

Data from the Coordinating Ministry for Infrastructure and Regional Development of the Republic of Indonesia shows that the gasoline consumption of hybrid cars is still high. Meanwhile, for BEVs (Battery Electric Vehicles), the figure is zero.

“Emissions from electric cars are generally lower than ICE (Internal Combustion Vehicle) vehicles throughout their usage cycle,” the report stated.

In addition, the use of fuel oil for domestic transportation reached 30 percent as of 2023.

Although the percentage is considered small, the provision of hybrid car incentives has managed to attract several manufacturers from China.

PT CSI (Chery Sales Indonesia) launched their first hybrid car, the Tiggo 8 CSH, and it is planned to join the incentive program.

Chery is also rumored to be launching another HEV product for the Indonesian market, suspected to be the Tiggo Cross Hybrid.

Photo : KatadataOTO

Unlike the Tiggo 8 which is a PHEV (Plug-in Hybrid Electric Vehicle), the Tiggo Cross is equipped with conventional hybrid technology.

Another brand, GWM, has registered a hybrid SUV model like the Jolion Ultra to receive tax subsidies from the government.

Meanwhile, there are far more models from Japanese brands. Among them are the Toyota Kijang Innova Zenix HEV, Yaris Cross HEV, Suzuki Ertiga Hybrid, and Fronx Hybrid.