Hybrid Car Incentive Regulations Issued, Zenix Price Expected to Fall

KatadataOTO – Following up on the discourse of providing hybrid car incentives towards the end of 2024, the official regulation regarding HEV (Hybrid Electric Vehicle) subsidies has finally been officially released.

Recently, the government issued PMK (Minister of Finance Regulation) Number 12 of 2025. It should be noted that the incentives will be applied to VAT (Value Added Tax) and PPnBM or the luxury goods sales tax for a qualifying vehicle.

Referring to this regulation, there are several types of hybrid cars that have the opportunity to receive incentives from the government. The first is the full hybrid four-wheeled motor vehicle, one of its characteristics being the ability to be driven by an electric motor for a certain time or at a certain speed.

Then there are mild hybrids, which are equipped with regenerative braking capabilities and have a motion-assist device in the form of an electric motor. Lastly is the PHEV (Plug-in Hybrid Electric Vehicle), equipped with an external charging system.

Photo : KatadataOTO

In article 14 number 1, it is explained that the government-borne PPnBM for hybrid or LCEV (low carbon emission vehicle) vehicles will be given for the tax period from January 2025 to December 2025.

If a manufacturer wants to take advantage of these incentives, they must register their vehicles. Then, they must obtain a low carbon emission vehicle designation letter from the Ministry of Industry.

The scheme is that the Ministry of Industry will then submit a list of vehicles that have met the requirements to receive subsidies to the Ministry of Finance.

Referring to this regulation, there are currently many manufacturers who can register their vehicles to receive hybrid car incentives, such as Toyota.

PT TAM (Toyota Astra Motor) markets many HEVs in the country, two of which are the Kijang Innova Zenix Hybrid and the Yaris Cross Hybrid. Both have a TKDN (Domestic Component Level) of 80 percent.

Toyota also confirmed that if the government assistance is implemented, the price of registered hybrid cars is guaranteed to decrease.

Photo : Carnewschina

In addition, there is PT SIS (Suzuki Indomobil Sales), which offers three-row configuration models, namely the Ertiga Hybrid and XL7 Hybrid. 

The brand from China, Chery, will also introduce a PHEV (Plug-in Hybrid Electric Vehicle) type hybrid car this year. It is possible that PT CSI (Chery Sales Indonesia) will include their hybrid SUV to receive the incentives.

Considering their electric vehicle line, the Omoda E5 and J6 are already locally assembled to pursue electric car subsidies in the form of a 10 percent tax cut.