The Ministry Of Industry Is Finalizing The Automotive Incentive Scheme For Next Year

Minister of Industry Agus Gumiwang Kartasasmita. (Photo: Kemenperin)

The Ministry of Industry (Kemenperin) is working on a new incentive scheme for the automotive industry which is planned to take effect next year. This step is taken to maintain the performance of the automotive sector which is considered to have a strategic role in the economy.

Minister of Industry Agus Gumiwang Kartasasmita, said the automotive sector cannot be underestimated because it has a large multiplier effect on other sectors. According to him, this industry has a strong connection, both upstream and downstream, so it must continue to be maintained.

"Yes, we are currently compiling it, and the automotive incentives are in my opinion a must, yes, because sectors are too important, very, very important. SBIN (National Industrialization New Strategy), our strategy is to look at the backward and forward linkage of every manufacturing activity," Agus said at the GJAW 2025 arena, ICE-BSD City, Tangerang, Wednesday, November 26.

"Backward and forward linkage are the largest in the automotive sector. So indeed the government should also prepare incentives for the automotive sector in 2026. Don't ask the type of incentive, we are currently compiling the incentives," he added.

He explained that the incentives being prepared will target two main aspects. In terms of demand, this policy is expected to be able to maintain people's purchasing power. Meanwhile, in terms of supply, incentives are designed to protect production utilization and the sustainability of investment in the automotive sector.

Launching the official website of the Ministry of Industry, the automotive industry has absorbed an investment of IDR 174 trillion and employs nearly 100,000 direct workers, both in the two-wheeled, four-wheeled, and three-wheeled vehicle segments. In addition, this sector also supports millions of workers along the supply chain, ranging from the component industry, logistics, distribution networks, to workshops and supermarket services.

The incentive policies that are being formulated will also be aligned with the direction of developing environmentally friendly vehicles. The Ministry of Industry ensures that this program will run in line with the electrification policy and low-emissioned vehicles that have been launched by the government earlier.

Agus added that his party continues to coordinate with related ministries and institutions as well as industry players to finalize the scheme. The goal is that the resulting policies are truly able to maintain industrial competitiveness, strengthen production structure, and ensure the automotive sector remains one of the pillars of economic growth and employment.

"We will continue to coordinate with the Coordinating Ministry for Economics, the Ministry of Finance, as well as associations such as Gaikindo and other industry players. The final goal is clear: maintaining competitiveness, strengthening the supply chain ecosystem for domestic automotive production, and ensuring the automotive industry remains a motor for growth and job creation," said Agus.