Tag: Policy

  • Wuling puts five EVs at 60% local content as INDEF warns of box-ticking

    Wuling puts five EVs at 60% local content as INDEF warns of box-ticking

    Top image: Wuling BinguoEV in Bandung. Photo: Mocarey15, CC0, via Wikimedia Commons

    Wuling Motors says five of its Indonesian-built electric cars now meet a 60% local content (TKDN) rating, putting the brand ahead of the government’s plan to make 60% the bar for EV incentives from 2027. The announcement came in the same week that economists at the Institute for Development of Economics and Finance (INDEF) questioned whether the higher threshold will build a real supplier industry or simply become a paperwork exercise.

    Which Wuling models qualify

    According to Kompas.com, the five models are the New BinguoEV hatchback, the larger New Cloud EV, the Darion EV MPV, the Eksion EV SUV and the compact Aira ev city car. Wuling said the rating had risen from 40% to 60%, largely because it now assembles battery packs in Indonesia, sourcing pack packaging, battery housings and wiring harnesses locally.

    The cars are built at Wuling’s plant in Cikarang, West Java, which handles body welding, painting, final assembly and quality checks. Local suppliers named by the company include PT Asahimas Flat Glass, tyre maker PT Gajah Tunggal and PT GS Battery. Vice President Arif Pramadana said the milestone would push Wuling to keep developing local production, including battery pack assembly.

    Wuling joins a growing list of brands positioning for the new rule. Hyundai said this week that its Indonesian-built Neira seven-seater will clear 60%, while BYD has said its Subang-built cars already exceed 40% and target 60% for 2027.

    INDEF: percentages are not enough

    INDEF economist M Rizal Taufikurahman argued in a statement reported by Bisnis.com that the success of the policy should not be judged by the local-content percentage alone, but by whether it delivers domestic value added, technology transfer and stronger component suppliers.

    “If the increase relies on assembly and bodywork while strategic components remain imported, industrial deepening will be limited,” Rizal said (translated from Indonesian).

    He also warned that raising TKDN without demand certainty and ready suppliers could push up production costs and slow EV adoption, and that without strict oversight the rule risks becoming administrative compliance with limited industrial benefit. Local suppliers, he said, need financing for machinery, certification and quality support.

    The legacy of the import window

    Rizal’s wider point is about timing. Under the 2024–2025 incentive scheme, fully imported (CBU) EVs paid 0% import duty instead of the normal 50%, and 0% luxury sales tax (PPnBM) instead of 15%. In return, brands had to build the same number of cars locally, backed by bank guarantees, with that production due in 2026–2027 – the same period in which the 60% threshold arrives. The CBU window closed on 31 December 2025, but imported stock and the market share it built are still in play, so local producers face a stiffer climb.

    The market itself is growing fast. Citing Gaikindo figures, INDEF noted battery EV wholesales reached 117,218 units in January–September 2026, about 17.26% of all car sales and already above the 103,931 sold in the whole of 2025 (see our January–September sales report). INDEF also flagged commercial vehicles: Indonesia imported 15,070 complete trucks from China in 2025, worth US$688.6 million, many with bodywork already fitted, leaving little work for local coachbuilders.

    What it means for buyers

    For now, little changes at the showroom. The 60% rule is due from 2027 (see our explainer on the new battery-pack requirement), and models that already meet it, such as the five Wuling EVs, look best placed to keep any VAT relief once it applies. Buyers considering a model that is still imported or below the threshold may want to ask dealers how the brand plans to qualify, as that could affect future pricing. Wuling’s full line-up is in our EV directory.

    Sources: Kompas.com – Lima Mobil Listrik Wuling Sudah Kantongi TKDN 60 Persen (4 Nov 2026); Bisnis.com – INDEF Soroti Konsistensi Kebijakan Impor dan TKDN Kendaraan Listrik (6 Nov 2026)

  • Bahlil says nickel-to-cell battery chain is complete, eyes curbs on new smelters

    Bahlil says nickel-to-cell battery chain is complete, eyes curbs on new smelters

    Top image: NASA/JPL, NASA/METI/AIST/Japan Space Systems and U.S./Japan ASTER Science Team, Public domain, via Wikimedia Commons. NASA satellite view of nickel mining in Southeast Sulawesi.

    Indonesia now has a battery supply chain that runs all the way from nickel mines to finished battery cells, according to Bahlil Lahadalia, the coordinating minister for downstreaming and energy transition, who also serves as energy and mineral resources minister. In the same speech, however, he signalled that the government is reviewing whether new smelters making only semi-finished products should still be allowed, saying most of the industry is still stuck halfway up the value chain.

    Bahlil was speaking on Monday 2 November at the opening of the Minerba Convention and Exhibition (Minerba Convex) 2026 at JIExpo Kemayoran in Jakarta, the same event at which economic council official Septian Hario Seto laid out the 60% local-content target for EVs in 2027.

    “From mine to battery cell”

    According to Antara and JawaPos, Bahlil said Indonesia was one of the countries that had managed to build an integrated car-battery ecosystem stretching from mining to battery cells. He pointed to three battery facilities: a plant in the Indonesia Weda Bay Industrial Park (IWIP) in Central Halmahera, North Maluku; the Hyundai LG Indonesia (HLI) Green Power cell plant in Karawang, West Java, which has been operating since July 2024; and the joint venture between state miner Antam and China’s CATL, which he said President Prabowo Subianto would inaugurate in Karawang this month. IndoEVs reported last week that Prabowo is expected to open the CATL-IBC plant.

    Antara’s Indonesian service also quoted him as saying that the idea of an integrated battery ecosystem had been doubted when it was first presented in 2020, and that the United States now sources precursor and cathode material from Indonesia.

    Export figures: sources differ

    Bahlil used nickel exports to argue that halting raw ore exports had paid off, but the reports give different numbers. JawaPos, carrying Antara copy, says exports grew from US$3.3 billion in 2017 to US$40 billion in 2025, with US$25.96 billion recorded by the Directorate General of Minerals and Coal up to August 2026. Antara’s Indonesian report and Kumparan put the post-ban level at about US$34 billion, compared with US$3.3 billion in 2017–2019, without naming a year. The gap may reflect different years or definitions; the ministry has not clarified it.

    A rethink on smelters

    The more consequential part of the speech may be the warning about where processing has stalled. Bahlil said most downstream output was still at the intermediate stage, around 50–60% of the full value chain, and described the number of smelters as having “boomed”. Antara reported that the government is weighing whether smelters that produce only semi-finished goods should still be built, or should face further regulation.

    “What we need to push is the end product, so that semi-finished raw materials are not all exported abroad.” – Bahlil Lahadalia, quoted by Antara (translated from Indonesian)

    Tri Winarno, director general of minerals and coal, said the next phase should cover intermediate materials and components, including for the battery industry. Bahlil also stressed, as reported by Media Nikel Indonesia, that downstreaming must be “equitable”, with benefits reaching communities around mining areas, not only higher commodity value and state revenue.

    The review builds on the option of a moratorium on new semi-finished nickel smelters that Bahlil raised in October, and comes as some Chinese nickel producers weigh output cuts.

    What it means for buyers

    For drivers, a mine-to-cell chain matters mainly through local content rules. With the TKDN threshold for battery EVs set to rise to 60% next year, carmakers that can buy locally made cells, such as those from HLI or the CATL joint venture, should find it easier to qualify for incentives and keep prices competitive. Whether incentives should favour nickel-based cells over nickel-free LFP (lithium iron phosphate) batteries remains a point of debate. The environmental footprint of the nickel parks, many of which run on captive coal power, is another open question. Hyundai, whose cell plant Bahlil cited, is listed in our EV directory.

    Sources: Antara (English); Antara (Indonesian); Kumparan; JawaPos; Media Nikel Indonesia.

  • EVs must hit 60% local content with locally built battery packs from 2027

    EVs must hit 60% local content with locally built battery packs from 2027

    Top image: Photo: RasyaAbhirama13, CC BY-SA 4.0, via Wikimedia Commons

    Electric cars sold in Indonesia will need at least 60% local content from next year, and their battery packs will have to be assembled in the country, according to Septian Hario Seto, executive secretary of the National Economic Council (DEN). Speaking at the Minerba Convention & Exhibition 2026 at JIExpo in Jakarta on Tuesday, Seto said the bar would rise again later in the decade to a level that forces carmakers to source battery cells locally, CNBC Indonesia reported.

    The comments are the clearest signal yet that the government intends to stick to the higher local-content threshold (TKDN) for battery electric vehicles in 2027, after weeks of debate over incentives, hybrids and nickel-based batteries.

    From 40% to 60%, then 80%

    Under the current rules, a battery EV needs at least 40% local content to qualify for Indonesia’s EV programme. Seto said that figure would step up to 60% next year, together with an obligation to turn imported or local cells into finished battery packs on Indonesian soil.

    He added that the requirement would reach 80% by 2029 – a date he gave with the caveat “if I’m not mistaken”. At that level, the battery cell itself must be produced domestically. “At 80%, the battery cells have to be made in Indonesia,” he said (translated from Indonesian).

    The timetable he described differs slightly from the one presented by the Ministry of Industry. In a September hearing with House Commission VII, cited in the same CNBC Indonesia report, Setia Diarta, director general of metal, machinery, transport equipment and electronics industries (ILMATE), set out a minimum of 40% until 2026, 60% for 2027–2029 and at least 80% from 2030. He said the industry would have to start making battery packs and modules locally so that finished batteries no longer need to be imported, and described the cell as the component that matters most for the TKDN score.

    Industry Minister Muhammad Sarmuji struck a confident note last week. Manufacturers that produce in Indonesia and use domestic components should be able to meet 60% by 2027, he said, according to Antara, adding that the government would push for technology transfer and monitor compliance.

    Why the government wants it

    Seto framed the TKDN path as a way to give investors predictable rules, arguing that Indonesia should avoid the kind of regulatory instability Thailand has experienced. He put national electric car sales last year at about 100,000 units, which he said places Indonesia among the world’s 20 largest EV markets.

    The battery requirement is also tied to Indonesia’s nickel strategy. Setia said downstream processing had already reached nickel sulphate and cobalt sulphate, and that the focus from 2026 to 2030 would shift to cathode and anode materials. Cell production capacity is starting to arrive: President Prabowo is due to open the CATL-IBC battery plant in Karawang, which would give carmakers a local source of cells.

    For brands already assembling locally, the step looks manageable. BYD has said its Subang-built cars already exceed 40% and that it is targeting 60% for 2027, while the ministry has suggested that even models that started life as imports could reach 60% with local batteries. The harder test will be the later move to locally made cells.

    Incentives still unresolved

    The local-content rules arrive while the industry is still waiting for clarity on incentives. Harry Yanto, vice president of operations at Kia Sales Indonesia, told reporters on 28 October that he expects the battery EV market to be flat in 2027 if no new support is introduced, CNN Indonesia reported. “Without attention from the government on this subsidy, prices will certainly be higher,” he said (translated from Indonesian). Kia is widening its line-up with hybrids and possibly plug-in hybrids in response.

    Several new incentive schemes have been discussed this year, including the proposal for bigger incentives for nickel-battery cars, but none had been implemented at the time of CNN Indonesia’s report.

    What it means for buyers

    • More locally assembled models: brands that want to stay in the EV programme will need local battery-pack lines, which favours makers with Indonesian plants such as BYD and Wuling.
    • Possible price pressure: localisation costs money up front, and with incentives still undecided, some brands warn prices could rise. Check our EV directory for current models and prices.
    • Longer term: local battery packs and, later, cells could make servicing and battery replacement easier to arrange in Indonesia.

    Official regulations setting out the 2027 threshold, including the exact start date and transition rules, had not been published at the time of writing.

    Update (5 November 2026): Hyundai says its Indonesian-built Neira seven-seater will clear the new threshold. Read our follow-up.

    Update (6 November 2026): Wuling now says five of its Indonesian-built EVs hold a 60% rating, while economists at INDEF warn the rule must build real suppliers rather than paperwork. Read the follow-up.

    Sources: CNBC Indonesia (3 Nov 2026); Antara News (29 Oct 2026); CNN Indonesia (30 Oct 2026)

  • Jakarta’s odd-even rule and EVs: what drivers need to know in 2026

    Jakarta’s odd-even rule and EVs: what drivers need to know in 2026

    Top image: Photo: Taman Renyah, CC BY 3.0, via Wikimedia Commons

    For many Jakarta drivers, the single most practical reason to choose a battery electric car is not the tax break or the running costs. It is being able to drive into the city centre on any weekday, whatever the last digit of the number plate. That perk comes from Jakarta’s odd-even (ganjil genap) traffic restriction, and it is now under review.

    This guide explains how the rule works, which vehicles are exempt, why hybrids do not qualify, what happens if you break it, and how the current debate could affect anyone thinking of buying an EV.

    How the odd-even rule works

    The scheme is set out in Jakarta Governor Regulation (Pergub) No. 88 of 2019, which amended an earlier 2018 regulation, according to a summary of the current rules published by Harian.news in August. The basics:

    • Days: Monday to Friday only. It does not apply on Saturdays, Sundays or national public holidays.
    • Hours: two sessions, 06:00–10:00 and 16:00–21:00 Western Indonesian Time (WIB).
    • Plates: cars whose plate ends in an odd digit (1, 3, 5, 7, 9) may use the restricted roads on odd-numbered dates; those ending in an even digit (0, 2, 4, 6, 8) on even-numbered dates.

    The restriction covers private four-wheeled vehicles on specified corridors, not the whole city. Outside the listed roads and hours, any car can drive as normal.

    Which roads are covered

    Harian.news lists 25 road sections, concentrated on Jakarta’s main north–south and east–west arteries. They include:

    • Central spine: Jalan M.H. Thamrin, Jalan Jenderal Sudirman, Jalan Medan Merdeka Barat, Jalan Sisingamangaraja, Jalan Panglima Polim and Jalan Fatmawati (between Jalan Ketimun 1 and Jalan T.B. Simatupang).
    • Old town and the north: Jalan Pintu Besar Selatan, Jalan Gajah Mada, Jalan Hayam Wuruk, Jalan Majapahit, Jalan Gunung Sahari and Jalan Stasiun Senen.
    • Business districts and the inner ring: Jalan Gatot Subroto, Jalan H.R. Rasuna Said, Jalan M.T. Haryono, Jalan D.I. Panjaitan, Jalan Jenderal S. Parman (Tomang Raya to Gatot Subroto) and Jalan Jenderal A. Yani (Bekasi Timur Raya to Perintis Kemerdekaan).
    • West and east links: Jalan Suryopranoto, Jalan Balikpapan, Jalan Kyai Caringin, Jalan Tomang Raya, Jalan Pramuka, Jalan Salemba Raya and Jalan Kramat Raya.

    If you commute along Sudirman–Thamrin or the Gatot Subroto–Rasuna Said business belt, the rule is likely to affect you on half of all working days.

    Who is exempt

    Medcom.id lists 13 categories of vehicle that are not bound by the rule. For private motorists the relevant ones are:

    • electric vehicles;
    • motorcycles, which are outside the scheme altogether, so electric motorbikes are unaffected either way;
    • cars carrying people with disabilities (with the appropriate sticker).

    The remaining categories cover emergency and official traffic: ambulances, fire engines, yellow-plate public transport, fuel tankers, red-plate government vehicles, military and police vehicles, vehicles of senior state officials and visiting foreign dignitaries, accident-recovery vehicles, supervised cash-in-transit vans, and vehicles granted discretion by the police.

    Only battery electric cars qualify

    The EV exemption applies to vehicles powered solely by electricity. As GridOto has explained, conventional hybrids still use a petrol engine, so they are not covered. The same logic applies to plug-in hybrids (PHEVs) and range-extender EVs (REEVs), which carry a petrol engine as a generator; our guide to hybrids, PHEVs, REEVs and full EVs explains the differences.

    Battery electric cars are identified by their number plate, which carries a blue strip along the validity-date section. There is no separate sticker to apply for: if your car is registered as a battery EV, the plate itself signals the exemption to officers and cameras.

    Fines and enforcement

    Breaking the rule is treated as ignoring a traffic sign under Law No. 22 of 2009 on Road Traffic and Transport. Harian.news cites Article 287, which allows a fine of up to Rp500,000 or up to two months’ imprisonment. Police enforce the rule both with officers at the roadside and through ETLE electronic cameras, Sinergianews reports.

    Is the EV exemption going to end?

    Not yet, but it is no longer guaranteed. The rule has been in place for roughly a decade, and in late September the Jakarta Transportation Agency held a focus group discussion to evaluate it. The agency is studying its economic and emissions effects, how vehicles should be classified, and which roads should be covered.

    Speaking at City Hall on 30 September, agency head Budi Awaluddin said simply: “There has been no change yet,” Antara reported (translated from Indonesian). He added that the scheme has been effective at reducing congestion and needs further study. Suara.com framed the dilemma: the exemption helps EV sales, but a fast-growing EV fleet using the restricted corridors freely could bring congestion back.

    Since then the debate has moved in two directions at once:

    • Extending the perk: Industry Minister Muhammad Sarmuji has proposed incentives for hybrids, PHEVs and REEVs that include odd-even exemption. We covered his proposal here. Carmakers such as Honda and Chery have argued for the same thing before, detikOto reported in 2025.
    • Phasing it out eventually: Periklindo chairman Moeldoko has suggested the EV exemption could end once EVs reach around 30% of the vehicle population, a level still far off (our report). Sarmuji has said he will hear Periklindo’s full case before taking a view (follow-up).

    Leapmotor, among other brands, has warned that removing the exemption could dent demand (background here). As of 1 November no change to the regulation has been announced, so battery EVs remain exempt.

    What it means for buyers

    • If you drive restricted corridors daily, a battery EV currently doubles the weekdays you can use them at peak times compared with a petrol car or hybrid. That is a real convenience, but treat it as a bonus rather than a permanent right when weighing up a purchase.
    • Do not buy a hybrid or PHEV expecting the exemption. Proposals to extend it are only proposals; under the current regulation they must follow the odd-even rule.
    • Check the plate on a used EV. The blue strip should be present and the registration should show an electric power source.
    • Look at the full cost picture. Tax, charging and depreciation matter more over several years than one traffic perk. Our guides to EV taxes and incentives and electric car prices and models cover those.
    • On two wheels, the rule does not apply to motorbikes at all, so an electric motorbike gains nothing extra here.

    We will update this guide if Jakarta changes the regulation or its list of exempt vehicles.

    Sources: Harian.news; Medcom.id; GridOto; Sinergianews; Antara; Suara.com; detikOto.

  • Sarmuji to hear Periklindo out on ending EVs’ Jakarta odd-even exemption

    Sarmuji to hear Periklindo out on ending EVs’ Jakarta odd-even exemption

    Top image: Photo: RasyaAbhirama13, CC BY-SA 3.0, via Wikimedia Commons

    Indonesia’s Minister of Industry, Muhammad Sarmuji, says the government will not take a position on scrapping electric vehicles’ exemption from Jakarta’s odd-even traffic rule until it has heard the full case from the industry association that floated the idea.

    Speaking to reporters at the Ministry of Industry in Jakarta on Wednesday 28 October, Sarmuji said the Indonesian Electric Vehicle Industry Association (Periklindo) would soon meet the ministry to explain its reasoning, CNBC Indonesia and Suara.com reported.

    “Periklindo will hold an audience with us. We will listen more fully to what its aspirations are.” – Muhammad Sarmuji, Minister of Industry, quoted by Suara.com (translated from Indonesian)

    What Periklindo proposed

    The idea came from Periklindo chairman Moeldoko, who suggested that the odd-even exemption for EVs could be reconsidered once electric vehicles make up roughly 30% of the vehicle population. As we reported on 27 October, he framed it as a future step rather than an immediate change. According to Suara.com, Moeldoko said he had discussed the idea with Jakarta Governor Pramono Anung, and argued that the perk is still needed for now because EV numbers remain low.

    “Right now the population is still small, so let [sales] stay buoyant first.” – Moeldoko, Periklindo chairman, quoted by Suara.com (translated from Indonesian)

    A non-fiscal incentive with real weight

    Jakarta’s odd-even scheme limits access to a set of major roads on alternating dates, depending on whether a car’s number plate ends in an odd or even digit. Battery electric vehicles are currently exempt, making it one of the most visible everyday advantages of owning an EV in the capital.

    Sarmuji said the government would weigh the gains and losses before deciding whether to keep or drop this non-fiscal incentive, acknowledging that removing it would directly affect EV sales in Jakarta, Suara.com reported. CNBC Indonesia noted that no decision or timeline has been set. Jakarta’s provincial administration is also looking at the rules separately – see our earlier report on the odd-even review and industry warnings over the EV exemption.

    Hybrids back in the frame

    In the same remarks, Sarmuji repeated his view that plug-in hybrids (PHEVs) and range-extended EVs (REEVs) could merit incentives, arguing that their fuel savings could help reduce the state’s fuel-subsidy bill and improve air quality. He did not say what form or size any such incentive might take, according to CNBC Indonesia.

    The minister first pushed the idea earlier this month, as covered in our report on hybrid and REEV incentives. On 27 October he also urged Toyota to step up battery-electric production and exports (read more).

    What it means for buyers

    • Nothing changes yet. Battery EVs remain exempt from Jakarta’s odd-even rule, and no decision or timetable has been announced.
    • The proposed trigger is a long way off. Periklindo’s suggested threshold is an EV share of around 30%, and Moeldoko himself argues the perk should stay for now.
    • Watch the hybrid debate. If PHEVs and REEVs gain incentives, the gap between them and pure EVs could narrow. Our guide to hybrids, PHEVs, REEVs and EVs explains the differences.

    Explainer: how the rule works, which roads and vehicles it covers and what the review could mean for buyers, in our guide to Jakarta’s odd-even rule and EVs.

    Sources: CNBC Indonesia – Respons Menperin Soal Usul Mobil Listrik Tak Perlu Lagi Insentif Gage (28 Oct 2026); Suara.com – Insentif Bebas Ganjil Genap untuk Mobil Listrik Mau Dicabut? Ini Kata Menperin (28 Oct 2026)

  • Industry minister presses Toyota to go full electric and export more

    Industry minister presses Toyota to go full electric and export more

    Top image: Photo: TTTNIS, CC0, via Wikimedia Commons

    Indonesia’s industry minister, Muhammad Sarmuji, has asked Toyota to move beyond hybrids and build more fully battery-electric vehicles (BEVs) in the country, while also pushing the brand to ship more Indonesian-made cars abroad. The request came at a meeting on Tuesday 27 October at the Ministry of Industry in Jakarta with Nandi Julyanto, president director of PT Toyota Motor Manufacturing Indonesia (TMMIN), Antara reported.

    “Go further” than hybrids

    Sarmuji praised Toyota’s hybrid production and its local battery plant for hybrids, which already exports components, but said the government now wants the company to commit more firmly to full electrification. He argued that Indonesia’s battery ecosystem is now advanced enough to support it.

    “We are asking Toyota to also go further, to full electric.”
    — Muhammad Sarmuji, Minister of Industry, via InvestorTrust (translated from Indonesian)

    The push follows the ministry’s recent signals that it is also open to support for hybrids and range-extended EVs, which we covered in our report on Sarmuji’s hybrid and REEV incentive proposal. Tuesday’s message suggests the ministry still wants Toyota to put BEVs at the centre of its local plans.

    Toyota: more BEVs on the way, details unknown

    Nandi said Toyota already builds the bZ4X electric SUV in Indonesia and is working on further battery-electric models for the local market. He did not disclose segments, specifications, prices or timing, according to CNBC Indonesia.

    “We are also preparing the next BEV models that suit the needs and conditions of the Indonesian market.”
    — Nandi Julyanto, TMMIN, via CNBC Indonesia (translated from Indonesian)

    Asked whether those models would be cheaper than the bZ4X, Nandi said he hoped so. CNBC Indonesia lists Jakarta on-the-road prices of about Rp799 million for the bZ4X Standard and Rp889 million for the all-wheel-drive bZ4X Touring, which puts Toyota’s locally built EV well above many of the Chinese-brand EVs on sale.

    Local content and the 2027 deadline

    The timing matters because the minimum local-content (TKDN) requirement for EVs rises to 60% from 2027, as set out in the ministry’s local-content roadmap. Earlier this month TMMIN vice president I Nyoman Winaya said the Karawang-built bZ4X stood at 40% local content and that the company was still studying how to reach the higher threshold, Radar Bogor reported. The same report said Toyota is working with CATL on battery production in Indonesia, with an investment reported at around Rp1.3 trillion, initially aimed at hybrids but with potential to supply BEVs later.

    Exports: Australia and double-cab pickups

    On exports, Sarmuji asked TMMIN to widen both its model range and its list of destination markets. He singled out Australia, citing its proximity and existing trade agreements, and urged Toyota to build double-cab pickups in Indonesia to compete for Australian demand, saying the government was prepared to adjust domestic rules to make that possible. Antara did not record a direct Toyota answer on the pickup idea.

    According to the minister, TMMIN employs around 8,000 people directly and supports roughly 360,000 jobs across its suppliers and dealer network.

    What it means for buyers

    For now, nothing changes on the showroom floor: the bZ4X remains Toyota’s only locally assembled BEV, and the brand has not said when the next one will arrive or what it will cost. But a more affordable, locally built Toyota EV would give buyers who value Toyota’s dealer and service network an alternative to Chinese brands. Our Toyota directory entry lists the current line-up and prices.

    Sources: Antara News; CNBC Indonesia; InvestorTrust; Radar Bogor (Jawa Pos)

  • Moeldoko: EVs could lose Jakarta odd-even exemption at 30% of fleet

    Moeldoko: EVs could lose Jakarta odd-even exemption at 30% of fleet

    Top image: Photo: Firzafp, CC BY 4.0, via Wikimedia Commons

    Battery electric cars may not keep their exemption from Jakarta’s odd-even (ganjil genap) traffic rule forever, according to Moeldoko, chairman of the Indonesian Electric Vehicle Industry Association (Periklindo). But he suggests the perk, and government purchase incentives, should stay in place until EVs make up roughly 30% of the vehicle population, a level Indonesia is still a long way from.

    The comments, reported by Bisnis.com on Monday 26 October, add an industry view to a debate that has been building for a fortnight. Jakarta’s transport agency is reviewing the odd-even scheme, and Industry Minister Muhammad Sarmuji has proposed extending the exemption to hybrids and range-extender EVs.

    A 30% threshold

    Moeldoko told Bisnis he had discussed the rule with Jakarta Governor Pramono Anung, and that it is a matter for regional governments to weigh. His position is that the exemption can reasonably go once EVs are common on the roads, but not yet.

    “If the electric vehicle population reaches around 30%, the odd-even exemption may need to be revoked.” (translated from Indonesian)

    Because the EV population is still relatively small, he argued, the current policy can be kept for now. He applied the same logic to incentives: in his view, government support is still needed to drive adoption until EVs reach about 30%, after which the market should be stable enough to stand on its own.

    He also played down the risk that losing the exemption would kill demand. Lower running costs, he said, remain a strong draw for buyers while non-subsidised petrol prices stay high.

    Where EV adoption stands

    Bisnis cited Gaikindo wholesale data showing 117,218 battery electric vehicles shipped to dealers in January–September 2026, up 112.25% from 55,225 a year earlier. That was 17.26% of the 679,020 cars wholesaled nationally over the nine months. The figures match those we reported in our look at EV sales to September.

    It is worth stressing that the 17% figure is a share of new car sales. Moeldoko’s 30% refers to the vehicle population, meaning cars already on the road. Bisnis did not give a current figure for that, but because Indonesia’s fleet is dominated by petrol and diesel cars bought over many years, the EV share of the total stock is far below the share of new sales (our observation). On that measure, the 30% mark looks some years away.

    Part of a wider Periklindo push

    The remarks fit a pattern for the association in recent days. Periklindo has called for incentives for electric buses and trucks, and has questioned plans to favour nickel-battery cars in a new incentive package. The association is also co-organising the PEVS 2026 show, which opens at JIExpo Kemayoran on 29 October.

    What it means for buyers

    • No change yet: battery electric cars in Jakarta are still exempt from the odd-even rule. Nothing has been decided, and the provincial review is ongoing.
    • Don’t count on the perk forever: both the industry body and the city now openly discuss an end point. If the exemption is a main reason to buy, factor in that it may not last the life of the car.
    • Running costs remain the core case: as Moeldoko notes, the fuel savings do not depend on traffic rules. Our EV running-costs guide sets out the numbers.

    Update, 28 October 2026: Industry minister Muhammad Sarmuji says the government will hear Periklindo’s full case before deciding on the exemption. Read the follow-up.

    Explainer: how the rule works, which roads and vehicles it covers and what the review could mean for buyers, in our guide to Jakarta’s odd-even rule and EVs.

    Sources: Bisnis.com – Moeldoko Bicara Sinyal Mobil Listrik Tak Lagi Bebas Ganjil Genap (26 Oct 2026); Gaikindo wholesale data as reported by Bisnis.com.

  • Periklindo pushes back on bigger EV incentives for nickel-battery cars

    Periklindo pushes back on bigger EV incentives for nickel-battery cars

    Top image: Photo: Yo-Co-Man, CC BY-SA 4.0, via Wikimedia Commons

    The Indonesian Electric Vehicle Industry Association (Periklindo) has asked the government to rethink a plan to give bigger purchase incentives to electric cars that use nickel-based batteries, arguing that cheaper chemistries such as lithium iron phosphate (LFP) have caught up and that tying support to one material could make EVs less affordable.

    The comments came at a Periklindo press conference in Jakarta on Friday, 23 October, Republika reported, as the government works to finalise its long-delayed incentive package for battery electric vehicles (BEVs). It follows the association’s call earlier in the week for incentives to be extended to electric buses and trucks.

    What the government has proposed

    Finance Minister Purbaya Yudhi Sadewa set out the basic idea in May: value-added tax on electric cars would be partly or fully borne by the state (PPN DTP), at 100 per cent for cars with nickel manganese cobalt (NMC) batteries and 40 per cent for cars with non-nickel batteries such as LFP, according to InvestorTrust and DDTCNews. The package was meant to start in mid-2026 but was postponed; in June, Coordinating Minister for Economic Affairs Airlangga Hartarto said the scheme was still being reviewed.

    Energy and Mineral Resources Minister Bahlil Lahadalia has defended the nickel tilt. In August he said LFP was not a government priority because Indonesia lacks its key raw materials, and argued that nickel batteries perform better on long journeys, Metro TV reported. Antara said on 23 October that a larger incentive for nickel-based EVs, aimed at using domestic minerals and building the national battery industry, remains one of the options under consideration.

    Periklindo’s objections

    Periklindo chairman Moeldoko said Indonesia’s large nickel reserves should not dictate which battery technology carmakers use.

    “Does the material have to be nickel? In my view it cannot be forced like that.” – Moeldoko, quoted by Antara and Republika (translated from Indonesian)

    The association’s deputy chairman for development and research, Prabowo Kartoleksono, said LFP batteries now offer energy density comparable to NMC at a price about 30 per cent lower, Antara reported. He warned that reserving the larger incentive for nickel batteries could limit manufacturers’ freedom to pick the technology that suits the market, which matters most for price-sensitive products such as electric motorbikes.

    He also pointed to a link with local-content rules: according to Otodream and Antara, he said that earning TKDN (local content) credit currently requires using nickel batteries, which he described as very expensive. That ties the debate to the ministry’s plan for a 60 per cent local-content requirement from 2027 and its view that local batteries could lift imported EVs’ local content.

    Prabowo Kartoleksono did see a nickel opportunity elsewhere. He said solid-state batteries can use nickel, and suggested Indonesia should consider entering that technology while it is still new. He also mentioned sodium-ion batteries as another alternative under development.

    Uncertainty is the bigger worry

    Beyond the nickel question, Periklindo asked for incentive policy that is clear, consistent and transparent. Republika reported the association’s concern that repeated delays encourage buyers to hold off while they wait for announcements, which makes production planning harder. The separate electric-motorbike subsidy is also still being finalised, after earlier plans pointed to a start no earlier than September 2026.

    What it means for buyers

    No final scheme has been published, so current prices still reflect the existing tax rules set out in our 2026 EV tax guide. If the 100/40 split proposed in May is adopted, the battery chemistry of a car would affect how much VAT relief it gets, so buyers comparing models should check whether a car uses an NMC or LFP pack. Anyone planning to buy soon faces the same dilemma Periklindo describes: waiting could bring a bigger discount, but there is still no confirmed date or final design.

    Sources: Antara (Indonesian), 23 Oct 2026; Republika (Indonesian), 24 Oct 2026; Otodream (Indonesian), 25 Oct 2026; DDTCNews (Indonesian), 23 Jun 2026; InvestorTrust (Indonesian), 2 Jun 2026; Metro TV (Indonesian), 4 Aug 2026.

  • Hybrid, PHEV, REEV or full EV: which suits drivers in Indonesia?

    Hybrid, PHEV, REEV or full EV: which suits drivers in Indonesia?

    Top image: Photo: M Raisfath, CC BY 4.0, via Wikimedia Commons. The BYD M6 DM-i, Indonesia’s best-selling plug-in hybrid so far in 2026, at GIIAS in Bandung.

    Walk into an Indonesian showroom in late 2026 and the word “electrified” can mean four quite different cars. Some never plug in, some plug in but still burn petrol most days, one type uses its engine only as a generator, and some have no engine at all. The government is now debating whether the three petrol-assisted types should get some of the perks that so far go only to full battery EVs. This guide explains how each works, how they are treated today and which suits which kind of driver.

    The four types in plain terms

    Hybrid (HEV)

    A conventional hybrid pairs a petrol engine with an electric motor and a small battery that is charged by the engine and by braking. You fill it with petrol and never plug it in. The electric side mainly helps at low speeds and in stop-start traffic, which is where it saves the most fuel.

    Plug-in hybrid (PHEV)

    A PHEV has a much larger battery that you charge from the mains, so it can cover shorter trips on electricity alone before the engine takes over. Chinese brands often market these under their own names, such as BYD’s DM-i, Chery’s CSH or Jaecoo’s SHS. The fuel savings depend almost entirely on how often you charge it: an uncharged PHEV is simply a heavy hybrid.

    Range-extended EV (REEV, sometimes EREV)

    A REEV is driven only by its electric motor. It carries a battery that is large by plug-in standards and a petrol engine whose job is to generate electricity when the battery runs low, not to turn the wheels. KatadataOTO describes the driving experience as much closer to a pure EV than a PHEV. Changan’s Deepal S05 REEV, launched this year as the first REEV on sale in Indonesia, lists a pure electric mode, a range-extending mode in which the engine-driven generator tops up the battery, regenerative braking and a “camping mode” that runs the generator while the car is parked.

    Battery electric vehicle (BEV)

    A BEV has no engine and runs entirely on its battery, charged at home or at public SPKLU stations. It has the lowest running costs and the fewest moving parts, but it depends on you having somewhere reliable to charge. Our charging guide covers the options.

    What Indonesians are actually buying

    Gaikindo’s wholesale figures (factory-to-dealer shipments) for January to September 2026 show the battery EV has overtaken the hybrid:

    • Battery EVs: 117,218 units, or 17.26% of a total market of 679,020, according to detikOto. Kompas gives a rounded figure of about 117,800 (17.3%); the small gap appears to come from different data cuts.
    • Hybrids: 65,968 units, or 9.72% of the market (detikOto). Hybrids led electrified sales from 2021 to 2024 before BEVs surged in 2025 and 2026.
    • Plug-in hybrids: 10,264 units, up 209.5% on the same period of 2025, led by the BYD M6 with 5,121 and the Chery Tiggo 8 CSH with 2,066 (CNN Indonesia). We covered the PHEV surge here.
    • REEVs: still a niche. CNN Indonesia’s PHEV table counts 29 Deepal S05 REEVs over the nine months.

    Our own calculation from these figures: battery EVs, hybrids and plug-ins together made up about 28.5% of all vehicles wholesaled in the first nine months.

    How the rules treat each type today

    Luxury tax. Under the luxury-tax regulation PP 74/2021, battery EVs are taxed on a 0% base, while plug-in hybrids and full hybrids pay luxury tax on a reduced share of their price, with the size of the reduction tied to fuel economy and emissions, as Gaikindo summarised when the rule was issued. The wider 2026 picture, including the end of the VAT discount and changes to regional vehicle tax, is in our EV tax and incentives guide.

    Odd-even and other perks. In Jakarta, battery EVs are exempt from the odd-even number-plate restriction; hybrids, PHEVs and REEVs are not. The city is reviewing that rule, and some brands have warned against removing the EV exemption.

    What may change. On 21 October Industry Minister Muhammad Sarmuji told Gaikindo that he wants non-fiscal incentives for hybrids, PHEVs and REEVs, including odd-even exemption and dedicated parking, and that tax relief is also being studied, though not necessarily at BEV levels (Koran Jakarta; our report is here). Nothing has been issued yet.

    “The plug-in hybrid and REEV incentives will be formulated.” — Industry Minister Muhammad Sarmuji, to detikOto (translated from Indonesian)

    Which one suits you?

    • Choose a battery EV if you can charge at home or at work, most of your driving is in and around one city, and you want the lowest running costs and, in Jakarta, freedom from odd-even. Our running-cost comparison sets out what charging costs against petrol.
    • Consider a REEV if you want to drive on electricity day to day but regularly travel where chargers are thin, such as long inter-city trips. Changan’s marketing head Ridjal Mulyadi told KatadataOTO that drivers covering about 170 km a day or less would run mainly on the battery. The choice is small: the S05 is priced in the Rp 500 million range.
    • Consider a PHEV only if you will plug it in most days. It suits households that can charge but want a petrol fallback for family trips.
    • Choose a hybrid if you cannot charge at all, for example in a flat or boarding house with no parking socket. You will still save fuel in traffic, with no change to how you refuel.

    Things to check before you buy

    • Your charging access, whether a home connection upgrade from PLN or a reliable SPKLU near your route.
    • Battery warranty terms for BEVs, PHEVs and REEVs, including whether they transfer to a second owner.
    • Your region’s vehicle tax. Exemptions are now set by each province, so check with your local Samsat or Bapenda.
    • Policy timing. Past EV incentives have been tied to local-content thresholds, so if a hybrid or REEV scheme is announced, ask the dealer where the car is assembled.

    Bottom line: the more reliably you can plug in, the further along the scale towards a full EV it makes sense to go.

    Sources: detikOto, Oct 2026; CNN Indonesia, 19 Oct 2026; Kompas.com, 17 Oct 2026; KatadataOTO, 11 Jul 2026; Kompas.com (biz), 28 Apr 2026; Koran Jakarta, 21 Oct 2026; Gaikindo, PP 74/2021 summary.

  • South Korea hands Bali 11 electric buses as Koster seeks free conversions

    South Korea hands Bali 11 electric buses as Koster seeks free conversions

    Top image: Photo: NFarras for Transport for Bandung, CC BY-SA 4.0, via Wikimedia Commons. The photo shows a Hyundai County Electric in West Java, the model supplied to Bali.

    Bali has put 11 Korean-funded electric buses on show, and a day later its governor asked South Korea to help with a bigger task: converting petrol vehicles to electric without the owners paying for it.

    The buses and six charging units were handed to the provincial government on Thursday 22 October at Niti Mandala Renon in Denpasar, Kompas reported. The grant comes through the Bali E-Mobility project, a partnership between South Korea’s Ministry of Climate, Energy and Environment, Indonesia’s national planning ministry (Bappenas) and the Global Green Growth Institute (GGGI).

    Korean chassis, Indonesian bodies

    According to a Hyundai Motor statement carried by CleanTechnica, the vehicles are Hyundai County EV mid-size buses: 8 metres long, 20 seats, a 128 kWh battery and a claimed range of more than 200 km per charge. Hyundai supplied the electric platforms and the bodies were built by Indonesian coachbuilder Laksana. GGGI ran the supply tender in the second half of 2025, after the two governments signed a memorandum of understanding that year.

    Governor I Wayan Koster said the buses meet Indonesia’s local-content (TKDN) requirements because the bodywork was made in the country, and that he had chosen a black, red and white livery referencing Tri Datu, a symbol closely tied to Balinese culture. When the grant was first announced in April 2025, The Bali Sun reported a figure of 10 buses and said Bali had asked for 8-metre vehicles to suit its narrow roads; the fleet delivered this week numbers 11.

    Hyundai said it will run a field quality-assurance programme during the initial deployment. Neither Kompas nor Hyundai’s statement set out the routes the buses will serve.

    “Studies in Bali show more than 90 percent of air pollution comes from fossil-fuelled power generation and transport.” — Governor I Wayan Koster, to Kompas (translated from Indonesian)

    Free conversions: an aim, not yet a programme

    On Friday 23 October Koster met South Korea’s ambassador to Indonesia, Yoon Soon-gu, at the governor’s residence in Denpasar. Kompas reported that he said the province needs third-party partners willing to convert conventional vehicles to battery power without placing a cost on owners, with cooperation sought on technology, investment and charging infrastructure.

    The talks also covered clean energy, public transport, digital technology, artificial intelligence, waste management and smart-city projects. Yoon pointed to South Korea’s 2050 carbon-neutrality target and offered to put Bali in touch with relevant Korean parties. No company, budget, vehicle type or timetable for a conversion scheme was announced.

    Bali’s EV policy dates back to Governor Regulation 48 of 2019 on battery electric vehicles, which Koster said was held back by the Covid-19 pandemic. He also said the central government has allocated 1,000 MW of solar capacity for Jembrana and Gilimanuk in west Bali, which is still going through permits and is expected to start in 2027.

    What it means for buyers and riders

    • Do not wait for a free conversion. There is no scheme to apply for yet, only a stated goal. If you are weighing a conversion now, our guide to converting a petrol motorbike to electric sets out the current costs and rules.
    • Bali’s charging base is growing. The island already had more than 17,700 EVs on the road earlier this month, as we reported, and PLN is rolling out battery-swap stations for work vehicles.
    • Electric public transport is still small. Eleven buses are a pilot rather than a network; watch for route announcements before planning around them.

    The grant comes in the same week that the electric vehicle association Periklindo called for EV incentives to be extended to electric buses and trucks.

    Sources: Kompas.com (Denpasar), 23 Oct 2026, bus grant; Kompas.com (Denpasar), 23 Oct 2026, conversion talks; CleanTechnica / Hyundai Motor, 22 Oct 2026; The Bali Sun, April 2025.

  • Periklindo urges EV incentives for buses and trucks as hybrid debate grows

    Periklindo urges EV incentives for buses and trucks as hybrid debate grows

    Top image: Photo: NFarras, CC BY-SA 4.0, via Wikimedia Commons

    The Indonesian Electric Vehicle Industry Association (Periklindo) has asked the government to extend electric-vehicle incentives beyond passenger cars to commercial vehicles such as buses and logistics trucks, adding a new voice to a policy debate that has so far centred on private cars and, this week, hybrids.

    Periklindo chairman Moeldoko made the case at a press conference in Jakarta on 22 October to promote the PEVS 2026 electric vehicle show, which runs from 29 October to 1 November at JIExpo Kemayoran. According to VIVA, he said the association has written to the government asking for commercial vehicles to be included in EV incentive policy.

    Why commercial vehicles?

    Moeldoko argued that commercial vehicles use a lot of fuel and emit a lot of CO2, and that Indonesia’s logistics costs are relatively high, so electrifying fleets could cut both emissions and operating costs for businesses that depend on distribution. Bus operators in particular face rising running costs as fuel prices climb, Investortrust reported, while JPNN said he also named logistics trucks as a target.

    “So far only passenger vehicles have been considered; all incentives have focused on passenger cars.” – Moeldoko, as quoted by Investortrust (translated from Indonesian)

    On the form of support, VIVA reported that Moeldoko suggested commercial vehicles could get the same kind of tax relief as passenger EVs, referring to a reduction from a 10 per cent rate, alongside non-fiscal perks in selected regions such as tourist areas. He gave no cost estimate, and the government has not announced any commercial EV incentive. Moeldoko also said that, in his view, EVs will need incentives until adoption reaches roughly 30 per cent; that is not an official target.

    A crowded incentive debate

    The call came a day after Industry Minister M. Sarmuji said he would ask the Finance Minister to consider incentives for hybrids, plug-in hybrids and range-extended EVs (REEVs), possibly including exemption from Jakarta’s odd-even traffic rule, as we reported earlier. CNBC Indonesia reported that Sarmuji hopes the incentives can take effect this year, or early next year if not.

    Unlike economists at INDEF, who argued that incentives should stay focused on battery EVs, Moeldoko did not oppose the hybrid plan. CNBC Indonesia quoted him as saying hybrids still help cut fuel consumption and CO2, and that fiscal and non-fiscal incentives are a concrete way to speed up the take-up of cleaner vehicles.

    The wider passenger-car package is still unclear. Bisnis.com reported on 23 October that, as of mid-October, the government had not officially announced the scheme or timetable for incentives covering 500,000 electric cars and 500,000 electric motorbikes that Finance Minister Purbaya Yudhi Sadewa had mentioned earlier. Separately, the local-content (TKDN) threshold linked to EV incentives is due to rise from 40 per cent to 60 per cent in 2027.

    What it means for buyers

    For private buyers, Periklindo’s push for commercial vehicles changes nothing immediately. The bigger question for anyone shopping for an EV now is whether the passenger-car incentives and the 2027 local-content rules will change which models qualify, and at what price. Bisnis.com’s own illustration shows the stakes: on a car priced at Rp 300 million before tax, 12 per cent VAT comes to Rp 36 million, so the size of any VAT relief makes a material difference. Until the rules are published, buyers should check whether a quoted price assumes an incentive that has not yet been confirmed. Our guide to EV taxes and incentives in 2026 explains the current position.

    Fleet operators, from bus companies to delivery and ride-hailing firms, have more reason to watch closely. If commercial EVs gain tax relief, the economics of electric buses and vans, such as the locally assembled DFSK Gelora E, would improve, but there is no timetable yet. Expect the subject to come up again at PEVS next week, where VIVA lists exhibitors including BAIC, BYD, Chery, DFSK, MAB, MG, Polytron and Wuling.

    Follow-up: Periklindo has also asked the government to rethink bigger incentives for nickel-battery EVs. Read: Periklindo pushes back on bigger EV incentives for nickel-battery cars.

    Sources: VIVA; Investortrust; JPNN; CNBC Indonesia; Bisnis.com.

  • Industry minister seeks hybrid and REEV incentives, including odd-even exemption

    Industry minister seeks hybrid and REEV incentives, including odd-even exemption

    Top image: Photo: Alex Neman, CC BY-SA 4.0, via Wikimedia Commons

    Indonesia’s Industry Minister, Muhammad Sarmuji, says his ministry will push for a package of incentives for hybrid, plug-in hybrid (PHEV) and range-extended electric vehicles (REEV). The proposed perks include exemption from city odd-even traffic rules and dedicated parking. Until now those benefits have been closely tied to battery electric vehicles (BEVs). Not everyone is convinced: a think-tank warns that the money and perks should stay focused on cars that burn no fuel at all.

    What the minister proposed

    Sarmuji spoke on Wednesday 21 October after meeting the car industry association Gaikindo at the ministry in Jakarta, CNBC Indonesia and detikFinance reported. He gave two reasons: cutting fuel consumption and emissions as fuel prices rise, and giving the domestic car industry a boost.

    According to the two reports, the ideas fall into two groups:

    • Non-fiscal incentives: easier administration, exemption from odd-even (ganjil genap) restrictions in cities, dedicated parking spaces and possibly charging facilities.
    • Fiscal incentives: some form of tax relief, which the government will study. Sarmuji said this would not necessarily match what BEVs receive.

    “The tax relief doesn’t have to be the same. What matters is that there is an incentive so the industry grows too,” he said, as quoted by detikFinance (translated from Indonesian).

    The minister acknowledged that no specific scheme exists yet for hybrids, PHEVs or REEVs. He argued that these vehicles suit local factories because they pair a battery with a combustion engine, so carmakers would not need to overhaul their existing component base. He said he would raise the plan with the Finance Ministry and other stakeholders and hoped to hold a meeting before the end of October. He is aiming to finish it this year, with early next year as a fallback, CNBC Indonesia reported. Because traffic and parking rules belong to other agencies and local governments, the ministry would also need to coordinate with them.

    Gaikindo chairman Putu Juli Ardika backed the move. He told reporters that the association’s survey, which it shared with the ministry, found that most vehicles produced in Indonesia can meet the 60% local-content (TKDN) requirement, detikFinance reported. The report did not say how a TKDN threshold would apply to hybrids specifically.

    Think-tank: keep the focus on battery EVs

    The proposal drew criticism from the INDEF Green Transition Initiative (INDEF GTI). According to KatadataOTO, the group urged President Prabowo Subianto’s government to channel incentive funding into battery-powered cars instead. It argues that BEVs give the biggest fuel saving for each rupiah of incentive, and that this would ease pressure on the state budget.

    Andry Satrio Nugroho, who heads industrial and transport decarbonisation at INDEF GTI, put it plainly: “Hybrid cars still fill up at the petrol station; electric cars don’t” (translated from Indonesian).

    INDEF GTI also pointed to fuel shortages in some regions. According to the figures KatadataOTO reported, consumption of subsidised fuel reached about 13.4 million kilolitres by September, up 9.1% on a year earlier. Energy subsidies and compensation payments have reached Rp 376.8 trillion, or 84.3% of the 2026 budget ceiling.

    Why the odd-even question matters

    The timing is sensitive. Jakarta is already reviewing its odd-even scheme, including whether BEVs should keep their exemption, and Leapmotor has already warned about what losing it could mean for EV demand. If the exemption were also given to hybrids, PHEVs and REEVs, it would cover far more cars and become less valuable to each one, especially on congested corridors where the rule is meant to cut traffic.

    Hybrids have had tax help before. Under the 2025 rules covered in our guide to EV taxes and incentives, battery EVs with at least 40% local content had 10 percentage points of VAT covered by the state, while hybrids got a smaller luxury-tax discount. The ministry is also still waiting on the Finance Ministry over a separate, long-delayed electric motorbike incentive.

    What it means for buyers

    For now, nothing has changed. No hybrid incentive has been drafted, and any tax relief needs Finance Ministry approval. Any traffic perk also depends on decisions by Jakarta and other cities. If you are choosing between a hybrid and a battery EV mainly for the odd-even exemption, that advantage could narrow, either because hybrids gain the exemption or because Jakarta changes the BEV rule. It is worth keeping an eye on the Finance Ministry meeting Sarmuji hopes to hold before the end of the month.

    Update, 23 October: Periklindo has since urged the government to extend EV incentives to buses and logistics trucks, while backing support for hybrids. Read our follow-up.

    Explainer: how hybrids, plug-in hybrids, REEVs and battery EVs differ, and which suits which driver, in our guide to choosing an electrified car in Indonesia.

    Update (27 October 2026): Periklindo chairman Moeldoko has also weighed in on the odd-even exemption. Read our follow-up.

    Update: On 27 October Sarmuji also asked Toyota to step up full battery-electric production in Indonesia. Read our follow-up.

    Explainer: how the rule works, which roads and vehicles it covers and what the review could mean for buyers, in our guide to Jakarta’s odd-even rule and EVs.

    Sources: CNBC Indonesia; detikFinance; KatadataOTO.