JAKARTA - The Ministry of Industry (Kemenperin) regretted the statement by the Coordinating Minister for the Economy Airlangga Hartarto which stated that there would be no incentives for the automotive sector next year.
This was conveyed by the Spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif, in the release of the Industrial Trust Index (IKI) in November 2025 at the Ministry of Industry Building, Jakarta, Thursday, November 27.
"Pak Menteri (Agus Gumiwang) menyayangkan ada pernyataan itu," ujar Febri.
Febri explained that the Ministry of Industry has just started formulating incentives for the automotive sector, but has received rejection.
"In fact, the automotive industry has been waiting for this incentive, by automotive industry workers, by automotive industry consumers," he said.
According to him, the provision of incentives will move all production lines in the automotive sector.
In fact, said Febri, it also has a positive impact outside the manufacturing sector, such as finance to trade.
"If there is an incentive, automotive sales will increase. Automotive sales will increase, meaning that automotive production utilization will increase," he said.
If automotive sales increase, later automotive production utilization will also increase. If utilization increases, it will move the supply chain from upstream to supply the automotive industry.
"It will provide more raw materials, it will need more suppliers, it will absorb more new workers," explained Febri.
Thus, according to Febri, the public is also happy to be able to get new vehicles at a lower price.
"So, the incentives for the automotive industry make all components in the automotive industry ecosystem both downstream and upstream are all happy. So, if someone refuses, yes, so they are not happy," he added.
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Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that no incentives would be given to the automotive industry next year.
"Next year's incentives don't exist because the industry is strong enough, especially since there is already this exhibition (GJAW)," he told reporters at ICE BSD, Wednesday, November 26.
The statement appears to confirm that the incentive proposal is developing, not yet leading and final. When asked about the submission from the Ministry of Industry, he did not answer clearly.
"Yes, it is being studied but there is no (decision) yet," he added.
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