Imported Electric Car Incentives Not Extended, TAM: Will Impact All Manufacturers

Marketing Director of PT Toyota Astra Motor (TAM) Jap Ernando Demily (second from the right). Photo: Theresia Agatha/VOI

PT Toyota Astra Motor (TAM) has opened its voice regarding the government's policy to stop incentives for electric cars completely built up (CBU) for pure electric cars or battery electric vehicles (BEV), which are mostly dominated by Chinese brands.

Marketing Director of PT Toyota Astra Motor (TAM) Jap Ernando Demily said that his party would still observe first the potential impact of the elimination of the overall import incentives for electric cars by the end of 2025.

"So, when asked what the impact will be on the plan to eliminate Chinese electric car incentives. First, let's look at it together first, because this will have an impact on almost all BEV players in Indonesia," said Ernando at the Astra Media Day 2025 event in Jakarta, Tuesday, September 23.

The condition of the automotive market in recent years has tended to stagnate, and has even decreased. He encouraged cross-sectoral collaboration to revive the national automotive industry.

"Secondly, the market conditions in recent years have stagnant, and even tend to decline. We hope that fellow automotive industry players and various stakeholders, such as the government as policy makers. We from industry, financing companies think about collaboration on how the industry grows again," he said.

According to him, it is important to have policies that are not only temporary incentives, but are able to encourage overall industrial growth. With a strong industry, double effects will be felt down to the lowest layer in the automotive supply chain.

"Hopefully, whatever the policy is, it can encourage the growth of industry in Indonesia. By building an industry, it will actually create a multiplier effect in tier 1,2,3. Then, dealers, caroseri, logistics companies can live again. Today, as many as 350,000 people are involved in the Toyota ecosystem," said Ernando.

"We hope that the policies taken in the future can immediately help restore industry in Indonesia," he concluded.

Previously, the government would 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.

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).