Hybrid Car Incentives still being Finalized with Related Ministries

Jakarta: Minister of Industry Muhammad Sarmuji said the government is still finalizing proposed incentives for hybrid cars through discussions with several related ministries.

Each ministry has a different perspective, so all considerations need to be taken into account before the government decides on an incentive scheme that can support the growth of the national automotive industry.

"It can't be just the Ministry of Industry's perspective," Sarmuji said, as quoted by Antara on Friday, November 6, 2026.

According to him, the discussions involve the Ministry of Finance, the Ministry of Energy and Mineral Resources, and the Coordinating Ministry for Economic Affairs, to align their views before the government sets the incentive scheme.

The government is still bringing these views together so that the resulting policy can support the national automotive industry, while also considering fiscal matters and the energy transition agenda.

"Yes, we're still bringing those perspectives together. It turns out there are many perspectives from other sectors that we need to accommodate," he said.

Open communication with stakeholders

Besides discussing hybrid vehicle incentives, the Ministry of Industry is also reaching out to various stakeholders for input on developing the national automotive industry.

This includes a planned meeting with the Indonesian Electric Vehicle Industry Association (Periklindo) to hear directly from industry players.

"Oh yes, he (Periklindo Chairman Moeldoko) has requested a meeting, and God willing, we will accept it," 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.

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

The ministry has proposed two types of incentives: fiscal and non-fiscal. Non-fiscal incentives include exemption from the odd-even traffic rule in big cities, special parking spaces, and electric vehicle charging facilities.

(Yaumil Tianri Rahmi)