The absence of automotive incentives in 2026 could make investors pull out.

KatadataOTO – The new car market in Indonesia has been very tough throughout 2025. Various obstacles have prevented it from performing optimally.

This has prompted the Ministry of Industry (Kemenperin) to propose providing incentives for the 2026 period.

This push in the form of assistance is considered very important, as a simultaneous market weakening can impact various sectors.

For example, a decrease in factory utilization, a drop in investment, and the potential to threaten the sustainability of jobs in the automotive and component sectors.

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“The absence of policy intervention will deepen this pressure,” said Febri Hendri Antoni, Spokesperson for the Ministry of Industry, on the official Ministry of Industry website, Tuesday (02/12).

Therefore, according to him, the Ministry of Industry is trying various ways to stimulate the new car market.

Such as by providing support in the form of incentives in 2026, so that the public and industry players can be helped.

“The effect (of the weakening new car market) can affect the industry as a whole,” Febri emphasized.

On the other hand, similar opinions were also expressed by other parties, such as the automotive community, who believe incentives are needed.

In fact, the stimulus must look at the specific needs of each segment, not be applied across the board.

Fiscal support from the government must target vehicles for the lower-middle class, not just focus on one type of car.

“This actually also applies to electric cars. I mean, incentives are needed for lower-middle class cars to be on target; for the upper segment, it's not even mandatory," said Sonny Eka Putra, Founder of Xpander Mitsubishi Owners Club.

Sonny gave an example, the majority of hybrid cars have higher prices, so it seems reasonable if they are not given incentives.

Meanwhile, Ryan Cayo, Chairman of the Supervisory Board of the Calya Sigra Club, believes that automotive incentives should not solely be discounts for manufacturers.

But they can be in other forms, as a stimulus to maintain the movement of the automotive ecosystem from upstream to downstream.

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“When the government sends mixed signals, it makes business players and consumers more cautious, and this can further slow down the market recovery," said Cahyo.

Uneven and uncertain incentive policies actually impact market psychology, with consumers choosing to postpone their decision to buy a car.

This includes the used car market, as they wait to see if there will be new incentives or regulatory changes.