Reported on November 26, 2025, Indonesia’s Coordinating Minister for Economic Affairs stated that the government does not intend to provide automotive incentives in 2026, citing strong sales at the 2025 auto exhibition as evidence that the sector can operate without additional fiscal support.
The statement clarified

Reported on October 20, 2025, President Prabowo confirmed that Indonesia has begun implementing plans to produce its own national cars within the next three years, aiming to strengthen the country’s automotive independence.
Land and funding have been allocated for a factory to produce the national vehicle, with devel

Reported on October 2, 2025, the Indonesian government was urged to take action to lower EV battery prices and ease the financial burden on consumers. A member of the Indonesian House of Representatives (DPR RI) Commission VII noted that current battery costs from official manufacturers, including OEMs, remain high,

On September 23, the president of the German Association of the Automotive Industry (VDA) welcomed the EU and Indonesia agreement on a free trade agreement after nine years of intensive negotiations. Indonesia is an important growth and diversification market for the German automotive industry. The agreement will cre

On September 23, the European Union and Indonesia finalised their negotiations on the ‘Comprehensive Economic Partnership Agreement’ (CEPA), and an Investment Protection Agreement (IPA). The agreement will give EU companies privileged access to the Indonesian market by removing import duties on 98.5% of tariff lines

Announced on September 13, 2025, Indonesia’s Industry Minister has issued Regulation No. 35/2025 to overhaul the Domestic Component Level (TKDN) policy, replacing Regulation No. 16/2011. The reform aims to make TKDN certification more affordable, faster, simpler, transparent, and accountable to boost investment and i

Reported on September 11, 2025, Mexico will raise import tariffs on cars from China and several other Asian countries as part of a broader policy aimed at protecting jobs. The measure covers sectors including automotive, steel, toys, and textiles.
Indonesia’s car export quota to Mexico is currently limited to around

Reported on August 26, 2025, Indonesia’s BEV import incentive, meant to support the domestic electric vehicle industry, has faced criticism for putting local manufacturers at a disadvantage. Researchers at LPEM-FEBUI warned that heavy reliance on imports could make the government’s 400,000-unit production target hard

On July 23, 2025, the Indonesian government, in collaboration with Italdesign, unveiled the i2C at GIIAS 2025.
The i2C is developed on an existing EV platform, marking a key step in the joint effort to create Indonesia’s first indigenous passenger vehicle. This concept fully electric 6/7-seater SUV is designed to mee

On July 22, the Trump administration announced that the U.S. and Indonesia agreed to a framework for negotiating an Agreement on Reciprocal Trade, which will open access to each other’s markets, with key terms including:
   •The U.S. will reduce to 19% the reciprocal tariffs on goods originating from Indonesia.
   •I

On July 13, 2025, the Presidents of the European Commission and Indonesia announced a strategic partnership in Brussels to strengthen cooperation in trade, security, and people-to-people ties.
Central to the partnership is a political agreement on the long-awaited Indonesia–EU Comprehensive Economic Partnership Agree

Announced on July 13, 2025, Indonesia’s Minister of Industry met with 3 major Japanese automotive manufacturers, Toyota, Suzuki, and Daihatsu, in Japan, urging them not to increase vehicle prices in the Indonesian market.
During his visit to the World Expo 2025 in Osaka, the minister emphasized the strong potential o

Announced on May 22, 2025, the Indonesian president has chaired a limited meeting with key ministers to discuss the continuation of Indonesia’s EV battery downstream project. The meeting focused on the transition of the USD 9.8 billion project from the LG consortium to China’s Huayou, as well as updates on a similar

Announced on May 22, 2025, during a limited meeting chaired by the Indonesian President, significant progress was reported on Indonesia’s cooperation with Chinese battery giant CATL, a key part of the country’s strategy to develop a comprehensive EV battery ecosystem.
Danantara, as a sovereign wealth fund, was highli

Reported on May 6, 2025, Indonesia’s Minister of Investment and Head of the Investment Coordinating Board (BKPM) has announced enhanced incentives for EV manufacturers based on their level of local content (TKDN). The higher the TKDN, the greater the incentives provided.
Currently, 7 EV manufacturers—VinFast, Volkswa

Reported on February 6, 2025, the Indonesian Minister of Investment and Downstream Industry/Head of the Investment Coordinating Board (BKPM), during a limited meeting with the President, discussed strategies to strengthen investment in the development of the electric vehicle industry.
In addition to the foreign inves

Announced on December 16, 2024, the Indonesian government has launched the Economic Policy Package for Welfare, which also includes the automotive sector. This is in line with the implementation of Value Added Tax (VAT) rate of 12% starting January 1, 2025. 
Effective for a period of 1 year starting January 1, 2025,

Announced on December 15, 2024, the Association of Indonesian Automotive Industries (Gaikindo) pointed out that HEVs and PHEVs also have various advantages in terms of being environmentally friendly. Therefore, the government should also consider providing incentives for them, rather than focusing on BEVs only.
Accor

Reported on November 26, 2024, Indonesia’s Industry Ministry has proposed a stimulus in the form of incentives for HEVs in Indonesia. According to the Industry Minister, if the discussion process goes smoothly, the implementation of the incentives could begin in early 2025. 
This incentive plan is a continuation of t

Reported on November 19, 2024, the Minister of Investment and Downstream Industry / Head of BKPM (the Indonesian Investment Coordinating Board), on November 8, signed a new regulation regarding the import duties and Luxury Goods Sales Tax (PPnBM) borne by the government for the import of CBU electric cars, effective