Industry Minister Reveals He Has Asked Purbaya for Automotive Incentives.

KatadataOTO – Agus Gumiwang Kartasasmita, Minister of Industry, revealed that his party has submitted a proposal for incentives and stimulus for the automotive industry. He submitted the proposal to Purbaya Yudhi Sadewa, the Minister of Finance.

He revealed that incentives in the automotive industry are considered important because they can protect the workforce in Indonesia.

“We have already sent it because the program we proposed is in the name of protecting the workforce. This is also a strength or reinforcement for the automotive manufacturing sector because it can contribute to the economy,” he said, as reported by Antara (01/01).

In the proposed program, he claims it will have a more optimal scheme than the incentives during the Covid-19 pandemic. Because the formulation has been done in more detail, considering various aspects.

Photo: KatadataOTO

Starting from vehicle segmentation, technology, to the weight of the Domestic Component Level (TKDN). In addition, the government is also giving special attention to the development of environmentally friendly cars.

“The principle is that those who benefit from the incentives and stimulus must have a TKDN, they must meet a certain maximum emission value,” said the Minister of Industry.

In the proposal, the Ministry of Industry also set price limits for each vehicle segment. So that the incentives can be truly well-targeted.

He explained that the formulation of the incentive proposal has gone through a long process and has involved industry players, in this case the Association of Indonesian Automotive Industries (Gaikindo).

“The goal of the Ministry of Industry is only one, which is to protect the existing workforce. Because the number in the automotive sector is too large, so we must protect it,” he emphasized again.

Furthermore, the Minister of Industry emphasized that the discussion of these incentives was carried out technocratically by calculating the cost and benefit aspects for the country.

Photo: CarNewsChina

“The Ministry of Industry certainly does not want the proposal to then cause the state to be short of funds or run a deficit. Therefore, the calculated benefits must be greater than the costs prepared by the state,” he concluded.

It should be noted that vehicle sales in Indonesia in 2025 are indeed experiencing considerable pressure. Even when compared to the previous year, the automotive market has experienced a significant decline.