Expectations About Electric Car Incentives Next Year, This Is What BYD Said

JAKARTA - Chinese automotive giant BYD hopes that electric car incentives will continue next year, because this greatly helps BYD's extraordinary achievements in Indonesia.

"Incentives really help this extraordinary achievement because the support of the government and our friends can achieve this. Therefore, in early 2026 we will also really need government support regarding the extension of the BEV incentives," said President Director of PT BYD Motor Indonesia, Eagle Zhao, when met in Sentul, Bogor.

The incentive in question is 10 percent Government Borne Value Added Tax (PPN DTP). Tertuang Regulation of the Minister of Finance (PMK) Number 12 of 2025. Local production electric vehicles with certain TKDN are entitled to VAT DTP.

So, VAT borne by buyers is smaller. The condition is that the electric car must be produced locally and has a TKDN (Domestic Component Level) of at least 40 percent.

BYD itself has just started assembling its car next year (2026) with an independent factory located in Subang with a fairly large production capacity.

"For increased production, we still need time, because in producing the BEV it can't be fast. We also have to create thousands of jobs in our manufacturing sector," he added.

BYD controls the BEV market

This brand from China is indeed a success in the Indonesian automotive market. In fact, together with its premium subbrand, Denza managed to acquire a BEV market share of 57 percent. Most and the largest among other manufacturers marketing pure electric cars.

"We have marketed at least 47,300 units from January to November 2025. This has also broken sales records in recent months of 10 thousand units per month of BEV, in November its growth reached 15 percent," he concluded.