Jaecoo on EV incentives for 2026, confident hybrids will still have a market

JAKARTA — The government aims to begin applying incentives for electric vehicles (EVs) in June 2026. The latest scheme is focused on boosting sales of pure electric cars, i.e., battery electric vehicles (BEVs). Unlike the previous scheme, incentives this time no longer cover hybrid cars, even though hybrids had previously enjoyed some tax relief as a transitional technology toward electrification.

‘T so far there are still consumers, and there is interest in models, especially the J7 SHS-P and J8 SHS-P Ardis, which are hybrids. Of course, those consumers still have confidence when buying a hybrid car,’ said Ilham in Bogor, West Java, on Thursday (21 May 2026). However Ilham did not deny that if there were incentives for hybrid cars it would have an overall impact. ‘But if there are, then it becomes a benefit for consumers,’ he said. ‘Yes, the hope is that the government already has its regulations, but if there are any and they apply, it would be a benefit for everyone,’ he added. The incentives, however, apply only to pure electric vehicles and do not cover hybrids.

Additionally, under the new scheme the government will begin differentiating the incentive amounts based on the type of battery used. The provision of incentives under the new scheme differs from the previous one, which was more focused on meeting the Domestic Component Level (TKDN) for EVs. Now the government intends to promote the use of nickel as one of Indonesia’s flagship resources, while also strengthening the downstream of the domestic EV battery industry.