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Incentives for imported electric vehicles will be stopped, potentially causing the prices of subsidized CBU EVs to rise in 2026.
KatadataOTO – Incentives for imported electric cars will not be continued in 2026. This is in line with the Minister of Investment Regulation Number 6 of 2023.
The Ministry of Industry (Kemenperin) has confirmed that the deadline for importing electric cars is December 31, 2025.
Meanwhile, from January 2026 to December 2027, manufacturers must adhere to the Local Component Level (TKDN) for the vehicle lines they market, gradually increasing from 40 percent to 60 percent.
All manufacturers receiving incentives are required to locally assemble vehicles in accordance with the number marketed domestically during 2024.
It should be noted that the Luxury Goods Sales Tax (PPnBM) for electric vehicles is 100 percent covered by the government.
Then, through the electric car import incentive program, import duties for Completely Built Up (CBU) electric cars are also waived.
Whereas under normal conditions, there is an import duty of 50 percent of the registered vehicle's sale value.
Without this deduction, there is a chance that imported electric cars in Indonesia will undergo a price adjustment if they are not locally assembled by 2026.
As a rough calculation, for example, the BYD Atto 1 is sold for Rp 195 million to Rp 235 million on the road in Jakarta.
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