"Automakers must explore alternative strategies to boost hybrid car sales"Jakarta (ANTARA) - The Association of Indonesian Automotive Industries (GAIKINDO) has accepted the government's decision to withhold incentives for hybrid vehicles.
"We understand and respect the government's decision," GAIKINDO's first chairperson, Jongkie Sugiarto, said while commenting on the government's position.
He emphasized the environmental benefits of hybrid cars and encouraged automakers to find ways to boost sales despite the absence of incentives.
"Automakers must explore alternative strategies to boost hybrid car sales," he added.
Hybrid vehicles offer advantages such as fuel efficiency, lower emissions, and reduced infrastructure needs compared to fully electric vehicles, he highlighted.
They are also generally more affordable. Given these benefits, GAIKINDO previously advocated for incentives for hybrid cars, although not necessarily at the same level as those offered for electric vehicles (EVs).
The government, through Coordinating Minister for Economic Affairs, Airlangga Hartarto, confirmed that there will be no new automotive policies this year, including additional incentives for hybrid vehicles.
Despite the lack of incentives, hybrid car sales have doubled compared to the previous year, indicating strong market demand.
Currently, hybrid cars are subject to a sales tax on luxury goods (PPnBM) of 6–12 percent. This contrasts with fully electric cars (battery electric vehicles/BEVs), which benefit from various incentives, including zero PPnBM.
The government is offering a government-borne 10-percent value-added tax (VAT) for electric cars that meet a minimum domestic component level (TKDN) of 40 percent.
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Translator: Chairul Rohman, Aditya Eko Sigit Wicaksono
Editor: Arie Novarina
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