Two Prabowo Ministers Disagree on Automotive Industry Incentives

KatadataOTO – Incentives for the automotive industry continue to resonate. The government is reportedly planning to provide assistance in 2026.

This is being done to stimulate the automotive segment, which is facing many challenges.

President Prabowo Subianto's aides have also provided the latest news regarding the proposed incentives.

"There are no incentives (for the automotive industry) next year," said Airlangga Hartarto, Coordinating Minister for Economic Affairs at ICE BSD, Tangerang, Wednesday (26/11).

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According to Airlangga, there are several reasons why incentives for the automotive segment will not be disbursed next year.

For example, the government believes that motorcycle and car manufacturers in the country are already strong enough.

Therefore, no stimulus is needed to boost the market. So they are signaling that they do not want to provide assistance.

In addition, there are a series of exhibitions being held. Starting from IIMS, GIIAS to GJAW in the country.

However, when asked about the automotive incentive proposal from the Ministry of Industry (Kemenperin), he said something different.

"Yes, it is being reviewed but has not been decided, there is still a chance (it will be given)," Airlangga affirmed.

If you look at it, incentives are indeed quite necessary. Especially to boost the sales of new cars.

Considering that this year the new four-wheeled vehicle market in the country has experienced a significant correction.

According to data from the Association of Indonesian Automotive Industries (Gaikindo), retail car sales (distribution from dealers to consumers) in the January-October 2025 period were recorded at 660,659 units. 

Meanwhile, wholesales or shipments from factories to dealers amounted to 645,844 units.

The figures above are still far from the target set by Gaikindo. Because they are determined to sell 850 thousand four-wheeled vehicles.

So the existence of incentives next year is very important. It is considered capable of stimulating the new car market.

Different Tone from the Minister of Industry

On the other hand, the Minister of Industry revealed that the automotive industry needs stimulus from the government.

"We are currently drafting it, in my opinion, automotive incentives are a necessity. Because it is too important a sector," said Agus Gumiwang Kartasasmita, Minister of Industry at ICE BSD, Tangerang.

He further emphasized that the incentive provision strategy must consider all factors from upstream to downstream.

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However, the Minister of Industry is still reluctant to explain in detail the type or scheme of incentives that will be disbursed to the automotive industry later.

As a reminder, the Ministry of Industry (Kemenperin) has stated that it will collaborate with a number of parties to discuss the assistance.

Starting from Gaikindo to other industry players. In order to get a lot of input for disbursing the incentives.