DFSK Responds to Uncertainty Over Electric Vehicle Incentives

JAKARTA — Uncertainty regarding the continuation of electric vehicle incentives in 2026 remains a concern for automotive industry players in Indonesia, as the government has yet to make an official announcement on the future of this policy.

CEO of PT Sokonindo Automobile, Alexander Barus, stated that there has been no decision to date on whether electric vehicle incentives will continue. However, should they be extended, he recommended replacing the current scheme with a more straightforward structure.

“The VAT and luxury goods sales tax (DTP) incentive is difficult to administer at the dealer level. The more vehicles they sell, the more 10 per cent VAT restitution they have to claim, so substantial amounts of money end up in limbo,” Barus said in Jakarta on Monday, 9 March 2026.

He suggested an alternative approach: “If an electric vehicle costs 10 rupiah, the customer would pay nine rupiah and the dealer would bill the government for one rupiah directly, eliminating the need for government-funded tax deductions.”

Meanwhile, COO of PT Sokonindo Automobile, Franz Wang, expressed optimism that the electric vehicle market in Indonesia would continue to develop regardless of the uncertain incentive policy.

Wang emphasised that government support remains critical to accelerate the adoption of electric vehicles domestically. “I believe this has become a new energy trend. If the government leads the development of renewable energy, it will drive faster market expansion,” he said.