The beginning of 2026 marks a critical turning point for Indonesia’s automotive technology industry. The government has reaffirmed the automotive sector as a national priority, citing its significant multiplier effect on the economy. As part of this strategy, future incentives will place stronger emphasis on local content requirements (TKDN) and vehicle emission standards. According to the Minister of Industry, the automotive incentives scheme in 2026 will adopt a different approach compared to previous policies.
Fiscal Efficiency and Industrial Strengthening
The government aims to ensure that incentive policies strategically support the strengthening of the national automotive industry. This includes comprehensive evaluations of Low-Cost Green Cars (LCGCs), electric vehicles (EVs), and hybrid technologies. The Ministry of Industry is currently formulating a new automotive incentives framework to be proposed under the 2026 fiscal policy. This initiative is designed to support the recovery of the automotive industry, which has faced challenges in recent periods, while maintaining product stability and market resilience.
Industry Expectations
Automotive industry stakeholders expect the final incentive decisions to stimulate vehicle sales and reinforce domestic supply chains. The government has emphasized that all policy measures will carefully balance fiscal benefits, industrial growth, and long-term national development. This includes accelerating the transition to environmentally friendly vehicles and encouraging domestic investment across the automotive value chain.
Comprehensive information on government regulations and incentive policies relevant to your business will be available at GIICOMVEC 2026, an exhibition that presents technical insights, technological innovations, and business solutions aligned with the operational and strategic needs of modern enterprises. GIICOMVEC 2026 will be held on 8–11 April 2026 at JIEXPO Kemayoran, Jakarta. Register to visit here.
