Gaikindo Resigned If Automotive Industry Misses Out on Government Incentives

KatadataOTO – Incentives for the automotive industry in 2026 are still under discussion. Especially after two of President Prabowo Subianto's ministers had a difference of opinion.

Agus Gumiwang Kartasasmita, Minister of Industry (Menperin), admitted to be proposing an incentive scheme for next year.

According to him, a stimulus is needed to help car manufacturers from the brink of bankruptcy. Because in 2025 the four-wheeled vehicle market is sluggish.

However Airlangga Hartarto, Coordinating Minister for Economic Affairs (Menko Perekonomian), believes the automotive industry no longer needs assistance.

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Based on this fact, he feels the government no longer needs to provide incentives for 2026.

The decision above has drawn various responses. As voiced by the Association of Indonesian Automotive Industries.

“We leave it to the government to decide what is best for us. The automotive industry, sales, and so on,” said Jongkie Sugiarto, Chairman I of Gaikindo at ICE BSD, Tangerang some time ago.

Jongkie said the government must have considered various aspects in formulating a policy.

Including when deciding on providing incentives next year. Therefore, Gaikindo is waiting for the decision from President Prabowo Subianto's aides.

“There is no problem, we are sure the government will provide the best for this. Because they also don't want the industry to collapse, the message is always no layoffs, right?,” continued Jongkie.

He also added that Gaikindo does not question the type of assistance from the government. Whether it's called an incentive or something else.

The most important thing is that sales of new cars in the country can be revitalized in 2026. So that it can bring a positive impact.

He also stated that the government already knows the condition of the domestic automotive industry.

Especially since Gaikindo regularly provides reports on new car market performance to the government. Especially when there is a decrease or an increase.

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For your information, new car sales in the January-October 2025 period were 660,659 units.

The figure above is still far from the target Gaikindo wants to achieve. Because they are determined to have 850 thousand to 900 thousand four-wheeled vehicles sold in 2025.

However, it seems the figure above will be quite difficult to achieve for Toyota, Daihatsu, BYD, and Jaecoo by the end of the year.