Jakarta – Coordinating Minister for Economic Affairs Airlanggaโข Hartarto stated Wednesday that theโฃ Indonesian automotiveโค industry will not receive โคgovernmentโ incentives โคin the coming year. This announcement comes after minister โof Industry Agus Gumiwang Kartasasmita indicated the government was actively developing incentive plans forโ the sector.
“There will be no (automotive) incentives next year,” Airlangga told journalists at the GJAW 2025 event held at ICE-BSD City, Tangerang.
Airlangga justified the decision by highlighting โthe โcurrent strength of the Indonesian automotive industry,citing the robustโค presence of bothโ national and international automotive exhibitions.”As the industry โis already quite strong. Moreover, it hasโค exhibited here. Very strong,” he added.
While acknowledging the ongoing discussion regarding โขpotential incentives, Airlangga clarified,โฃ “It is still being studied (the plan toโข provide automotive incentives). It is indeed being studied, but thereโฃ is no (decision) yet.”
This statement contrasts with โMinister Agus Gumiwang Kartasasmita’s earlier comments emphasizingโฃ the automotive industry’s importance to Indonesia‘s economy.Agus stated the sector is a national mainstayโค and that incentives are “a necessity” due โto itsโ significant backward and forward linkages within the manufacturing landscape. He confirmed the government was preparing incentive options for โค2026, without detailing their specific form.
The Ministry of Industry reports the automotive sector is โขa keyโ contributor to Indonesia’s Gross Domestic Product (GDP) manufacturing, exports, and employment, with estimated โinvestment reaching approximately IDR โ174 trillion and employing nearly 100,000 workersโ across the four-wheeled, two-wheeled, andโ three-wheeled vehicle industries.
(lua/lth)