Minister of Industry Continues to Push for Incentives, Despite Airlangga's Rejection

KatadataOTO – Incentives for the automotive industry are becoming a polemic. Because President Prabowo Subianto's ministers have different opinions.

Recently, the Ministry of Industry (Kemenperin) provided the latest news regarding this assistance for the 2026 period.

“This sector is a very important sector, too important for us to ignore, it's impossible for us to ignore,” said Agus Gumiwang Kartasasmita, Minister of Industry (Menperin), as quoted by Antara on Tuesday (02/12).

According to Agus, the sustainability of the automotive industry is considered very important. Considering that this assistance has a large sustainable impact.

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Therefore, it requires a stimulus in the 2026 period. Especially after experiencing a contraction or decline.

“The forward and backward linkages are extraordinary, the labor absorption is also extraordinarily large, the added value for the economy is also extraordinarily large,” Agus continued.

Agus also emphasized that the Ministry of Industry will continue to try to propose government incentives or stimulus for the automotive sector.

Furthermore, Agus explained that the incentives being prepared cover the demand side. Then, they will target the supply side.

“It is our responsibility, it would be wrong if we did not fight for it,” Agus affirmed.

Airlangga's Reasons for Rejecting the Incentive Proposal

As a reminder, Airlangga Hartarto, Coordinating Minister for Economic Affairs, has confirmed that the government does not want to provide incentives next year.

Because there are several reasons why they are reluctant to provide assistance to car and motorcycle manufacturers in the country.

“Incentives have been given for two years to establish factories and the results are already tangible,” said Airlangga.

Airlangga stated that car manufacturers who entered through the EV import incentive scheme have reportedly started local assembly.

This has apparently had a positive impact. Such as the emergence of products with competitive price tags.

“If we look at this year, there are already many with prices relatively below Rp 300 million,” Airlangga Hartarto added.

The minister revealed that the government has allocated incentives with a fairly large budget over the last two years.

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The figure reached Rp 7 trillion for the automotive sector alone. He considers this amount to be more than enough.

With progress considered adequate, the government now wants to shift its focus to creating national production facilities.

The plan above is indicated to be the government's discourse for producing national cars and motorcycles.