Ministry of Industry to Partner with Gaikindo to Discuss New Incentives

KatadataOTO – The government admits it is preparing a new incentive or subsidy scheme for 2026. This is being done to safeguard the national automotive industry.

The Ministry of Industry (Kemenperin) admits it will collaborate with several parties to discuss the aid.

“We will continue to coordinate with the Coordinating Ministry for Economic Affairs, the Ministry of Finance, as well as associations like Gaikindo and other industry players,” said Agus Gumiwang Kartasasmita, Minister of Industry, on the official Kemenperin website, Monday (17/11).

The minister serving under President Prabowo Subianto hopes that the incentives to be provided next year can have a positive impact.

Photo : Suzuki

Such as maintaining the competitiveness of the domestic automotive industry. And strengthening the production supply chain in the country.

“As well as ensuring the automotive industry remains an engine of growth and job creation,” Agus continued.

Indeed, incentives or subsidies from the government are considered important. Because the four-wheeled vehicle and electric motorcycle industries are facing tough challenges.

This is because the economy has been weakening throughout 2025, causing the purchasing power of the Indonesian people to decline.

Consequently, sales of cars and electric motorcycles have not been optimal. In fact, they have tended to decline sharply in recent times.

Therefore, the proposal for new incentives or subsidies in 2026 is very crucial, as it concerns the livelihoods of many people.

“If this sector is disrupted, the chain effect will impact many other industries and millions of workers,” Agus Gumiwang Kartasasmita added.

According to Agus, millions of workers are involved throughout the automotive value chain, from component suppliers and logistics to sales networks and both official and unofficial workshops.

Therefore, the government's presence is seen as a significant help for the sustainability of the automotive industry next year.

“That is why Kemenperin sees the need for a measured intervention through an appropriate incentive scheme,” Agus Gumiwang Kartasasmita affirmed.

Furthermore, the Minister of Industry stated that the proposed 2026 incentives will be synergized with the development agenda for the electric vehicle ecosystem.

Photo : KatadataOTO

This includes plans for the continuation and refinement of incentives for the purchase of electric motorcycles, which the government has previously launched.

The Minister of Industry revealed that the automotive industry is a key sector with a large contribution to the manufacturing Gross Domestic Product (GDP), exports, and labor absorption.

Investment in this sector is estimated to have reached around Rp 174 trillion. It has also absorbed nearly 100,000 direct workers in the four-wheeled, two-wheeled, and three-wheeled vehicle industries.