Finance Minister Meets Gaikindo, Discusses Automotive Incentives for 2026?

JAKARTA, KOMPAS.com – Finance Minister Purbaya Yudhi Sadewa held a meeting with the Indonesian Automotive Industry Association (Gaikindo) at the Ministry of Finance office in Jakarta on Thursday (9 April 2026). The main agenda of the meeting was to discuss strengthening the domestic automotive market while accelerating the transition to electric and hybrid vehicles. During the meeting, Purbaya highlighted the performance of the national automotive market, which showed positive trends in the first quarter of 2026. “The government is committed to providing support to make the domestic automotive industry increasingly competitive globally, while promoting the transition to cleaner vehicles,” Purbaya stated in his official remarks on Friday (10 April 2026). According to him, synergy between government policies and industry readiness is key to enabling Indonesia to play a larger role in the global electric vehicle supply chain, while reducing carbon emissions from the transportation sector. However, it was not specified whether the meeting also discussed the continuation of automotive incentives for the 2026 fiscal year. Gaikindo has not yet provided a response when confirmed until this news was published. In a separate opportunity, Gaikindo General Chairman Putu Juli Ardika said that they are still awaiting policy certainty from the government for 2026. He explained that stimuli in the automotive sector can basically be directed towards two sides: producers (manufacturing) or consumers. However, in the current conditions, incentives are deemed more effective if they directly target vehicle buyers. “Stimuli can actually be divided into two: for manufacturing (upstream) and for vehicle buyers (downstream). But what is most feasible to provide now is for consumers,” said Putu. According to him, the automotive industry has already received several facilities for investment, such as tax holidays and various other fiscal incentives. Therefore, policies that lower vehicle prices at the consumer level are seen as having a greater impact on demand. “For manufacturing, there are already facilities like tax holidays and several other investment easements. So what is being addressed now is more towards buyers to make vehicles more affordable,” he said. For information, several automotive incentives ended on 31 December 2025, including exemption from import duties on completely built-up electric vehicles, 10 per cent VAT for electric vehicles, and government-borne luxury goods sales tax incentives for hybrid vehicles. Industry Minister Agus Gumiwang Kartasasmita previously revealed that proposals for automotive incentives for 2026 have been submitted to the Ministry of Finance, but they are still under discussion to date.