inp.polri.go.id - Jakarta. The Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the continuation of the incentive policy in the automotive sector for 2026 is still under thorough review, considering the substantial fiscal support provided in recent years.

According to him, over the past two years the government has allocated automotive incentives totaling IDR 7 trillion. Meanwhile, investment performance in the motor vehicle industry, particularly electric vehicles, has shown a consistently improving trend.

"We have provided incentives for the past two years, totaling IDR 7 trillion. And the current direction is, and investment in the automotive sector, especially EVs, has increased," he said at the Indonesian Business Council (IBC) Business Outlook 2026 in Jakarta, as reported by antaranews, Wednesday (1/14/2026).

He further added that the entry of several global electric vehicle manufacturers reinforces the need for policy evaluation.

Several brands, such as VinFast and BYD, have begun investing in Indonesia, following Hyundai's earlier investment.

Given these conditions, the government wants to ensure that the next policy direction is not simply a continuation of existing incentives, but rather an improved support to the national automotive industry, including the development of a national car.

"So, going forward, this will be driven by the development of a national car," he explained.

He further explained that, regarding the follow-up proposal from the Ministry of Industry, he stated that discussions are still focused on more fundamental studies.

Evaluations are needed across segments, from low-cost, environmentally friendly vehicles (LCGCs) to electric vehicles and hybrid technology.

"Because a more substantial evaluation means starting from LCGCs to EVs, plug-in hybrids, and hybrids. So it's more comprehensive," he concluded.

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