Jakarta. Starting in 2026, Industry Ministry will no longer continue incentives for battery electric vehicles (BEVs) imported as completely built-up (CBU) units into the domestic market.

Previously, the government provided incentives for CBU electric car imports until the end of December 2025, including exemptions from import duties as well as reductions in luxury goods sales tax (PPnBM) and value-added tax (VAT). The regulation requires each beneficiary company to realize local production at a 1:1 ratio with the number of CBU vehicles imported into Indonesia.

"God willing, we will no longer issue CBU import permits, especially under investment schemes that receive incentives," said Minister of Industry Agus Gumiwang Kartasasmita, as quoted by Antara on Friday. 

The Director General of Metal, Machinery, Transportation Equipment, and Electronics Industries (ILMATE) at the Industry Ministry, Setia Diarta, also confirmed that the CBU electric vehicle import incentive facility will not be extended next year.

Currently, six companies are benefiting from the BEV CBU import incentives, namely National Assemblers (Citroën, AION, and Maxus), BYD Auto Indonesia, PT Geely Motor Indonesia,  VinFast Automobile Indonesia, Era Industri Otomotif (Xpeng), and Inchcape Indomobil Energi Baru (GWM Ora).

These six companies have committed to investing a total of Rp 15.52 trillion in Indonesia with a combined production capacity of up to 305,000 units, as compensation for the incentives received. The Ministry is urging all manufacturers to immediately realize local production.

Previously, the Director of the Maritime, Transportation Equipment, and Defense Equipment Industry at the Ministry of Industry, Mahardi Tunggul Wicaksono, called on automotive companies that have benefited from CBU electric car import facilities to promptly fulfill their production obligations, with attention to Domestic Component Level -- or TKDN -- regulations starting in 2026.

According to the regulation, from January 1, 2026, to December 31, 2027, electric vehicle manufacturers must produce units in Indonesia equal to the number of CBU imports. This production must also comply with applicable TKDN requirements.

"In its implementation, companies must pay attention to TKDN values. From 40 percent, it must be gradually increased to 60 percent," Mahardi explained.

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