Indonesian Political, Business & Finance News

Periklindo Urges Government to Clarify EV Incentive Requirements

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Business

Wakil Ketua Umum Bidang Hubungan Masyarakat Perkumpulan Industri Kendaraan Listrik Indonesia (Periklindo), Achmad Rofiqi, has urged the government to clarify the requirements for automotive companies entitled to receive electric vehicle (EV) incentives, as the subsidies will no longer be given directly to consumers. “I see that if this is restricted, it will be a setback,” he said during a Zoom webinar on Friday, 24 July 2026. The request was made after Finance Minister Purbaya Yudhi Sadewa stated on Tuesday that the incentive plan would be redirected to certain specific companies, though the plan still requires input from the Ministry of Industry and the Daya Anagata Nusantara Investment Management Agency (BPI Danantara). Rofiqi said EV industry players have yet to receive clear guidance on how to obtain these incentives. Technical details such as the Domestic Component Level (TKDN) per unit or the investment amount from each brand also remain unknown. Furthermore, he assessed that the plan to grant incentives to only a few companies is detrimental to fairness within the automotive industry. “This will also slow down the development of manufacturing in Indonesia,” he stated. Rofiqi noted that domestic automotive industry players are still hoping for more entities to enter the market, as the previous equitable distribution of incentives successfully attracted foreign investment. Beyond job creation, he said, such investment brings comprehensive technology transfer. “It provides an opportunity for Indonesia’s young generation to learn advanced technology, not just conventional cars,” Rofiqi remarked. Periklindo continues to respect the regulations the government will implement, including the evaluation of EV incentives. Business players are currently opting to wait for the regulations to be issued. On Tuesday, Finance Minister Purbaya Yudhi Sadewa conveyed that incentives for electric cars would be considered, with the subsidy quota for both motorcycles and cars remaining at 100,000 units each. The implementation of this year’s EV incentives has been delayed from the initial plan in June, and while a new scheme is planned, its execution remains uncertain.

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