Imported Electric Car Incentives Not Extended, Manufacturers Asked To Build Factory In Indonesia

JAKARTA - The government will not continue providing incentives for electric cars completely built up (CBU).

This was confirmed by the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita.

"This year, God willing, we will no longer issue a CBU permit in the context of an investment scheme by benefiting," Agus said at a press conference in Jakarta, Thursday, September 11.

The incentives ended in December 2025. The incentives provided by the government are in the form of exemption from import duties and PPnBM.

The termination of the incentives was also confirmed by the Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry of Industry, Setia Diarta.

The man who is familiarly called Tata said that producers are required to switch to local production in accordance with the roadmap at the domestic component level (TKDN) after the incentives end.

To note, there are six automotive companies that have entered the CBU import incentive program. Among others, BYD Auto Indonesia; Vinfast Automobile Indonesia; Geely Motor Indonesia; Automotive Industry Era (Xpeng); National Assemblers (Aion, Citroen, Maxus and VW); and Inchape Indomobil Energi Baru (GWM Ora).

"(Incentives) of CBU have stopped. CBU through several brands, such as BYD and there are several other brands to build factories or produce here," he said.

Adapun pabrikan mobil listrik yang masih mengandalkan impor CBU hanya punya waktu hingga 31 Desember 2025 untuk menikmati insentif berupa pembebasan Bea Masuk dan PPnBM.

Setelah periode tersebut, skema insentif impor resmi berakhir dan para produsen diwajibkan beralih ke produksi lokal sesuai dengan peta jalan TKDN.

Kewajiban itu tertuang dalam Peraturan Menteri Investasi Nomor 6 Tahun 2023 jo Nomor 1 Tahun 2024, yang menjadi acuan roadmap industri kendaraan listrik.

The electric car manufacturers that still rely on CBU imports only have until December 31, 2025 to enjoy incentives in the form of exemption from Import Duty and PPnBM.

After that period, the official import incentive scheme ends and producers are required to switch to local production according to the TKDN roadmap.

This obligation is contained in the Regulation of the Minister of Investment Number 6 of 2023 in conjunction with Number 1 of 2024, which is a reference for the roadmap of the electric vehicle industry.