Indonesia reviews hybrid vehicle incentives, with proposal expected in 2026
The industry minister says support need not match incentives for fully electric vehicles, while Toyota calls for measures to lift new-car demand.
Indonesia is considering incentives for hybrid vehicles to support domestic car demand, with a formal proposal expected before the end of 2026. Industry Minister Muhammad Sarmuji said on October 27 that discussions with stakeholders were under way to develop the measures and establish their value.
Sarmuji said hybrid incentives would not necessarily be equivalent to those available for battery electric vehicles (BEVs). He said the aim was to stimulate demand and strengthen automotive manufacturing in Indonesia.
Nandi Julyanto, president director of PT Toyota Motor Manufacturing Indonesia (TMMIN), called for measures to improve consumers’ purchasing power. Speaking after TMMIN and PT Toyota-Astra Motor met the minister, he said prospective customers were increasingly choosing used cars and that stimulus was needed to increase new-car sales.
In an October 21 statement, Sarmuji had also proposed non-fiscal support covering hybrids, plug-in hybrids and range-extended electric vehicles. Possible measures included simpler administrative procedures, exemptions from odd-even traffic restrictions, designated parking and charging infrastructure for vehicles that need it. He said BEVs already benefited from substantial tax and non-fiscal support, but the other vehicle categories still required tailored measures to help reduce emissions and consumption of state-subsidised fuel.
