Antara News·Indonesia·Wednesday, October 28, 2026 at 10:08 AM UTC

Indonesia weighs hybrid vehicle incentives, proposal due this year

Translate

Ahmad Muzdaffar, Uyu Liman

Jakarta (ANTARA) - The Indonesian government is reviewing an incentive package for hybrid vehicles to stimulate the domestic automotive market, with a formal proposal expected to be submitted later this year.

Industry Minister Muhammad Sarmuji said here on Tuesday (October 27) that technical discussions are underway with relevant stakeholders to formulate the policy and determine the exact value of the proposed incentives.

According to the minister, incentives for hybrid cars do not necessarily have to match those granted to fully electric battery electric vehicles (BEVs). The primary objective, he stressed, is to effectively drive market demand while strengthening the national automotive manufacturing base.

Sarmuji noted that Indonesia's motor vehicle ownership ratio remains low compared to its regional peers in Southeast Asia.

Indonesia’s car ownership rate currently stands at approximately 99 units per 1,000 people, trailing significantly behind Thailand's 275 units and Malaysia's roughly 490 units per 1,000 people.

President Director of PT Toyota Motor Manufacturing Indonesia (TMMIN) Nandi Julyanto underscored the need for market stimuli to revive consumer purchasing power, noting that many prospective buyers are currently turning to the used car market.

"We conveyed the importance of stimuli to boost purchasing power so that new car sales can rise, particularly as the market is currently shifting toward used cars," Julyanto said following a joint meeting between TMMIN, PT Toyota-Astra Motor (TAM), and the minister.

Earlier, Sarmuji also advocated for non-fiscal incentives for hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and range-extended electric vehicles (REEVs) to accelerate the sector's green transition and reduce national fuel consumption.

"Non-fiscal incentives could encompass streamlined administrative processes, exemptions from odd-even traffic rationing schemes, dedicated parking spaces, and charging facilities for models that require them," Sarmuji said in a statement on October 21.

He added that while full BEVs have already received substantial fiscal and non-fiscal support — such as tax breaks and traffic rule exemptions — tailored incentive frameworks are still vital for hybrids, PHEVs, and REEVs.

The adoption of these low-emission vehicles is seen as critical to curbing emissions and easing the burden of state-subsidized fuel consumption nationwide.

View the original on Antara News →

KioskNews shows a cleaned-up reading view extracted from the publisher’s page — the original always lives on their site, not ours.