Politics · Indonesia · 2 hrs ago
Indonesia weighs incentives for hybrid cars
Indonesia's industry minister is preparing a proposal for hybrid-car incentives that he aims to submit this year.
Government ministries have begun technical discussions, but they have not agreed on how large the incentives should be.
The proposed support would not have to match incentives for battery-electric cars, according to the minister.
Toyota's Indonesia chief says incentives could help lift new-car sales, as buyers shift towards used cars.
He said the stimulus could support people's ability to buy new vehicles.
The government and industry still need to discuss fair criteria, which could take emissions or fuel savings into account.
Indonesia’s Industry Minister Muhammad Sarmuji says a proposal for incentives for hybrid cars could be submitted this year.
Technical discussions between ministries have begun, but the size of any incentive has not been decided.
Sarmuji says the incentive would not have to match support for battery-electric vehicles.
Toyota Motor Manufacturing Indonesia President Director Nandi Julyanto says a stimulus could support purchasing power and new-car sales.
Julyanto says Indonesia’s auto market is shifting from new cars to used cars, and that incentives should be based on clear, fair criteria.
- Who
- Industry Minister Muhammad Sarmuji and Toyota Motor Manufacturing Indonesia President Director Nandi Julyanto.
- What
- The government is considering incentives for hybrid cars, but their size and form remain under discussion.
- When
- Sarmuji said the proposal could be submitted this year. He spoke on October 27, 2026.
- Where
- Jakarta, Indonesia.
- Why
- The industry says incentives could support purchasing power and new-car sales as demand shifts toward used cars.
This story does not have two clearly opposing sides.
Sarmuji discussed the proposed hybrid-car incentives in Jakarta after technical discussions between ministries had begun.
Sarmuji said the proposal for incentives could be submitted.
- Proposed incentive
- For hybrid cars
- Potential submission
- This year
- Minister
- Muhammad Sarmuji
- Industry representative
- Nandi Julyanto, president director of PT Toyota Motor Manufacturing Indonesia
- Discussion location
- Jakarta, Indonesia
What people are saying
From the industry side, they are not asking for the same as BEVs, but the important thing is that there is an incentive
We spoke earlier about the importance of a stimulus to increase purchasing power, so that purchases of new cars increase. Because now the market is shifting to used cars
If there is an incentive, it should be fair. What should it be based on? If it is based on emissions, then look at emissions. If it is based on savings, then savings. Just make it fair