Antara News·Indonesia·Friday, November 6, 2026 at 08:27 AM UTC

Minister refines hybrid car incentives with related ministries

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M Harianto, Fauzul Azhim Bin Fakhrurazi

Jakarta (ANTARA) - Minister of Industry Muhammad Sarmuji said the government is still refining the proposed incentives for hybrid cars through discussions with several relevant ministries.

Sarmuji said in Jakarta on Thursday that the deliberations cannot rely solely on the perspective of the Ministry of Industry, as the policy also involves the energy, finance, and economic sectors.

“It cannot be only the Ministry of Industry’s perspective,” Sarmuji said.

He said each ministry has a different perspective, so all considerations must be accommodated before the government determines an incentive scheme that is deemed capable of supporting the development of the national automotive industry.

According to him, the discussions involve the Ministry of Finance, the Ministry of Energy and Mineral Resources (ESDM), and the Coordinating Ministry for Economic Affairs, to align the various considerations before the government sets the incentive scheme.

The government is still bringing these views together so that the resulting policy supports the growth of the national automotive industry, while also taking into account fiscal aspects and the energy transition agenda.

“Yes, we are still reconciling those perspectives. It turns out there are many perspectives from other sectors that we must accommodate,” he said.

Besides discussing hybrid vehicle incentives, the Ministry of Industry is also engaging various stakeholders to gather input on the development of the national automotive industry.

One such step is a planned audience with the Indonesian Electric Vehicle Industry Association (Periklindo), to hear the views and aspirations of industry players directly.

“Yes, he (Periklindo General Chairman Moeldoko) has requested an audience, and insyaallah, we will receive him,” Sarmuji said.

Earlier, the Ministry of Industry proposed incentives for range-extended electric vehicles (REEV) and plug-in hybrid electric vehicles (PHEV) developed in Indonesia.

“Of course, this requires incentives. For battery electric vehicles (BEV), adequate incentives already exist, including administrative ones such as exemption from the odd-even traffic rule. Meanwhile, incentives for plug-in hybrids and REEVs have not yet been formulated,” Sarmuji said in Jakarta on Wednesday (21/10).

He said incentives for these two vehicle types are important because they could reduce the use of subsidized fuel, such as Pertalite.

The Ministry of Industry has proposed two types of incentives: fiscal and non-fiscal. Non-fiscal incentives include exemption from odd-even traffic rules in major cities, dedicated parking spaces, and electric vehicle charging facilities.

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