Gaikindo Continues To Leave Incentive Decisions To The Government

JAKARTA The Indonesian Automotive Industries Association (Gaikindo) is still waiting for the government's decision regarding incentives for the automotive industry in 2026. Moreover, currently, President Prabowo Subianto's two ministers are still crossing opinions about incentives.

Previously, the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita, admitted that he was proposing an incentive scheme for next year. According to him, a stimulus is needed to help car manufacturers from the brink of bankruptcy.

However, Coordinating Minister for Economic Affairs (Menko Perekonomian) Airlangga Hartarto, emphasized that under next year there is no need for incentives for the automotive industry. Gaikindo also responded to this condition.

Chairman I Gaikindo Jongkie Sugiarto, said that his party did not want to speculate about the policy direction. He emphasized that the automotive industry will follow whatever the government decides.

"We leave it to the government what is best for us. The automotive industry, sales and so on," Jongkie Sugiarto told reporters in Tangerang, quoted on Tuesday, December 2.

Jongkie added that any form of support is basically not a problem for industry players. For them, the most important thing is that the new car market can move more lively in the coming year.

He said that mentioning the term incentive or other schemes was not the main focus as long as the policy helped the recovery of the automotive industry. Gaikindo believes that the government will definitely make the best decision.

"There is no problem, we are sure that the government will give the best for this. Because they also don't want the industry to fall, the message is that they can't lay off, right? continued Jongkie.

For information, the sale of new cars in the January-October 2025 period was 660,659 units. The figure above is still far from the target that Gaikindo wants to achieve.

Because they are determined that 850 thousand units to 900 thousand units of four-wheeled vehicles will be sold in 2025. It is predicted that the automotive market next year will be more challenging, as there is no clarity regarding incentives.