Automotive Industry Pressured in 2026: Fuel Price Hikes, EV Tax Changes
JAKARTA, KOMPAS.com - The national automotive industry is projected to face pressure in 2026, alongside the rise in prices of non-subsidised fuels (BBM) and changes to electric vehicle (EV) tax policies.
An automotive expert from the Bandung Institute of Technology, Yannes Martinus Pasaribu, assesses that this situation occurs amid the weakening of several economic indicators.
“In general, 2026 represents a confluence where non-subsidiised BBM prices rise, the central government reduces EV tax incentive support, the middle class is under pressure, GDP growth slows, and the Consumer Confidence Index weakens somewhat,” Yannes told Kompas.com on Sunday (19/4/2026).
One of the main pressures stems from the adjustment of non-subsidised BBM prices by PT Pertamina (Persero).
Pertamax Turbo (RON 98) is now priced at Rp 19,400 per litre in the DKI Jakarta area and surroundings, up from Rp 13,100 per litre.
Dexlite has increased to Rp 23,600 per litre from Rp 14,200, while Pertamina Dex reaches Rp 23,900 per litre from Rp 14,500.
These increases will drive up operational costs for internal combustion engine vehicles, while compressing societal consumption space, particularly for the middle class.
At the same time, the government is changing the taxation approach for electric vehicles through Ministry of Home Affairs Regulation Number 11 of 2026.
Electric vehicles will no longer automatically be exempt from Motor Vehicle Tax (PKB) and Motor Vehicle Ownership Transfer Duty (BBNKB), but will depend on the policies of respective regional governments.
“This pressure on the middle class is estimated to significantly affect the purchasing power for retail entry-level passenger cars, given that around 80 percent of car transactions in Indonesia rely on leasing,” Yannes said.
“High interest rates and a slowing economy will certainly pressure consumers’ ability to make instalment payments,” he added.
According to him, the fuel price increase should encourage the adoption of electric vehicles due to their lower operational costs.
However, the reduced certainty of incentives will weaken the appeal of electric vehicles, not as strong as before.