automotive

The Government's Economic Incentive Package Serves As A Breath Of Fresh Air For The Automotive Industry

The government has announced the introduction of 15 economic policy incentives that will take effect on January 1, 2025. One of the key sectors targeted for these incentives is the automotive industry. Kukuh Kumara, the Secretary General of the Indonesian Automotive Industry Association (Gaikindo), stated that these incentives could provide a much-needed boost to the automotive sector amid the current climate of uncertainty. 

The fiscal incentives for electric vehicles (EVs) that have been implemented by the government over the past few years are considered effective in promoting the adoption and performance of the electric vehicle industry. "Additionally, the fiscal incentive for hybrids, which has not been previously offered, will now be set at three percent. Hybrids have recently garnered interest from the public. Therefore, in 2025, this three percent incentive will be introduced. The expectation is that interest will be high even before the incentive is applied, and it appears to be very promising," Kukuh remarked in a statement on Monday, December 23. In addition to expressing appreciation for the government's support of the automotive sector, Kukuh highlighted an interesting aspect of the incentive program: the requirements that must be met. 

Vehicles eligible for these incentives must be produced in Indonesia. "This is expected to create a snowball effect, such as fostering job creation and significantly impacting the national economy," Kukuh added. 

Tag: Automotive Industry Electric Vehicle Industry Kukuh Kumara