Indonesia to Introduce New Automotive Incentives for 2026

Enhanced Specificity in New Incentive Scheme

The Indonesian government is developing a new incentive scheme for the automotive industry in 2026, with plans to make the program more specific and detailed compared to previous initiatives ¹

. Minister of Industry Agus Gumiwang Kartasasmita has proposed the new scheme, which will focus on factors such as vehicle segments, technology, and local content (TKDN) ¹

Source 1

https://finance.detik.com/industri/d-8287112/bocoran-isi-surat-menperin-ke-purbaya-soal-insentif-otomotif

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Key Features of the Proposed Incentive Scheme

1. Segment-specific incentives: The new scheme will differentiate between various vehicle segments
2. Technology focus: Incentives will be tailored based on the technology used in vehicles
3. Local content requirement (TKDN): Higher TKDN will likely receive more favorable treatment
4. Environmental focus: The scheme aims to promote the production of environmentally friendly vehicles

Industry Response and Market Context

The automotive industry has shown mixed performance in 2025, with sales failing to meet the psychological level of 800,000 units ⁴

. As of November 2025, wholesale sales reached 710,084 units, representing a 9.6% decline compared to the same period in 2024 ⁴

Source 4

https://industri.kontan.co.id/news/penjualan-mobil-tak-tembus-target-insentif-dilanjutkan-di-tahun-ini

. Industry experts believe that while the incentive scheme is on the right track, its effectiveness in boosting sales needs to be enhanced ³

Source 3

https://industri.kontan.co.id/news/pemberian-insentif-otomotif-perlu-bertahap-agar-penjualan-mobil-terdongkrak

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Implementation and Future Plans

Finance Minister Purbaya Yudhi Sadewa has indicated that further discussions will be held regarding the proposed incentive scheme ²

. The Ministry of Industry is working closely with the Ministry of Finance to finalize the details of the program. The new scheme represents a shift from the broader incentives provided during the COVID-19 pandemic to a more targeted approach for 2026.