Indonesian Government to Consider New Automotive Incentives for 2026

Economic Stimulus for Slumping Automotive Sector

The Indonesian government is poised to discuss potential new incentives for the automotive industry in 2026, following a significant decline in vehicle sales throughout 2025. This development comes as the Ministry of Industry and Gaikindo project that sales will fall short of the 800,000-unit mark for the year ³

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Current Sales Performance

According to Gaikindo's data, wholesale sales reached 710,084 units through November 2025, representing a 9.6% year-on-year decline ³

. This follows a stronger performance in 2024 when wholesale sales totaled 865,723 units. The projected shortfall in 2025 sales has prompted industry stakeholders to push for government support.

Government Response

Minister of Finance Purbaya Yudhi Sadewa confirmed that discussions about potential automotive incentives are forthcoming, stating, "I will discuss it with them first, but I haven't discussed it yet" ¹

. Purbaya emphasized that no formal proposal from the Ministry of Industry, led by Agus Gumiwang Kartasasmita, has been received to date ¹

Source 1

https://finance.detik.com/industri/d-8288062/purbaya-mau-bahas-dulu-usulan-insentif-industri-otomotif

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Source 2

https://industri.kontan.co.id/news/penghentian-insentif-mobil-listrik-dinilai-berisiko-tekan-transisi-energi

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Industry Implications

The potential introduction of new incentives for 2026 comes at a critical time for Indonesia's automotive sector. Industry players are advocating for support measures to stimulate demand and boost sales. The government's consideration of these incentives reflects a broader effort to maintain economic momentum and support key industries facing challenging market conditions.