Indonesian Government Considers Incentives for Hybrid Vehicles

Jakarta – The electrification development in Indonesia has been a significant highlight in recent years. The government continues to push for the adoption of electric vehicle by providing various facilitations, such as incentives.

In Indonesia, electrification not only encompasses electric vehicles but also includes Hybrid (HEV) and Plug-in Hybrid vehicles.

Unfortunately, the government currently only provides incentives for electric vehicles. Regarding incentives for Hybrid cars, the government acknowledges that it is still under discussion.

This was revealed by Airlangga Hartarto, the Coordinating Minister for Economic Affairs of Indonesia.

"For Hybrid vehicle incentives, it is still under discussion between the Ministry of Industry and the President. Indeed, there is a demand in that direction because Hybrid sales are higher than electric vehicles at the moment," the Minister said during the IIMS 2024 exhibition, JIEXpo Kemayoran, Jakarta.

According to Minister Hartarto, the government is still evaluating this issue, "We will further evaluate (Hybrid vehicles),"

As information, the government currently only provides support for Hybrid vehicles in the form of tax exemptions with certain percentages.

This is also stipulated in Presidential Regulation (PP) number 7 of 2021 concerning the exemption of PPnBM, Minister of Finance Regulation (PMK) number 38 of 2023 concerning the 10 percent VAT incentive, and Presidential Regulation number 79 of 2023 concerning the exemption of CBU BEV imports.

Based on PP number 7 of 2021, Hybrid vehicles in Indonesia only receive PPnBM reductions according to cylinder capacity and emissions, with amounts ranging from 15 percent, 20 percent, to 30 percent.

These figures are much lower compared to conventional cars, which receive PPnBM reductions ranging from 15 percent to 75 percent.