Toyota Still Awaiting Further Hybrid Car Incentive Regulations

KatadataOTO – The government has officially provided hybrid car incentives to boost sales of HEVs (Hybrid Electric Vehicles) in the country.

The provision was previously announced in mid-December 2024 during the Press Conference on the Economic Policy Package: Accelerating Inclusive & Sustainable Economic Growth.

The incentive for hybrid cars is scheduled to take effect on January 1, 2025. However, the detailed rules and requirements for registering models have not yet been released.

“We are still waiting for the policy details regarding the provision of hybrid car incentives, including which models are eligible to receive this incentive,” said Anton Jimmi Suwandy, Marketing Director of PT TAM (Toyota Astra Motor) to KatadataOTO some time ago.

Photo : Toyota

He previously revealed that there are two candidates that can be submitted for the program, namely the Kijang Innova Zenix HEV and the Yaris Cross HEV.

Considering that TKDN (Local Component Level) is one of the requirements that manufacturers must meet. Both the Kijang Innova Zenix HEV and the Yaris Cross HEV are already locally assembled with a TKDN of up to 80 percent.

“Hopefully, this policy can be implemented as soon as possible and the final result will be positive in increasing the hybrid market as the largest contributor to xEV sales in Indonesia,” Anton affirmed.

If it is officially implemented later, Anton himself confirmed that the price of registered hybrid cars will decrease.

For your information, providing the PPnBM DTP incentive for hybrid cars is said to require a budget of Rp 840 billion.

Several manufacturers have the opportunity to register their products because they are already locally assembled, besides Toyota, such as the Wuling Almaz Hybrid RS, Suzuki XL7 Hybrid, and Ertiga Hybrid.

Photo : TAM

The provision regarding the TKDN value, which is one of the requirements according to the Ministry of Industry, has been regulated in the Minister of Industry Regulation Number 36 of 2021 concerning Low Carbon Emission Four-Wheeled Motor Vehicles.

The Ministry of Industry itself highlighted the public's view that the decline in automotive sales is caused by the decreasing purchasing power of the middle class. Therefore, a stimulus from the government is needed.

“The provision of this incentive is the government's answer,” said Agus Gumiwang, Minister of Industry of the Republic of Indonesia, in his press conference some time ago.