September 12, 2025 | 11:24 am
TEMPO.CO, Jakarta - The Industry Ministry has announced it will not extend the incentives for imported battery electric vehicles (BEVs) under the Completely Built-Up (CBU) scheme beyond 2025. This decision signals a clear shift towards prioritizing domestic production within the nation's burgeoning electric vehicle market.
"We will no longer issue CBU permits," affirmed Industry Minister Agus Gumiwangi Kartasasmita in a statement from Jakarta on Friday, September 12, 2025.
He clarified, "CBU permits were issued under an investment scheme that included benefits." This policy change aims to encourage manufacturers to establish local production facilities rather than relying on imports.
Currently, the government offers incentives for CBU electric car imports, including relief from import duties, sales tax on luxury goods (PPnBM), and value-added tax (VAT). These incentives are available until the end of December 2025.
The condition for receiving these benefits is that companies must commit to a domestic production ratio of 1:1, meaning they must produce one vehicle locally for every CBU unit imported.
Setia Diarta, Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) at the Industry Ministry, confirmed that the government will not extend the CBU import incentive for electric cars under the investment scheme into the next year. This confirmation reinforces the government's commitment to its new policy direction.
Six companies are currently benefiting from these BEV import incentives: PT National Assemblers (Citroen, AION, and Maxus), PT BYD Auto Indonesia, PT Geely Motor Indonesia, PT VinFast Automobile Indonesia, PT Era Industri Otomotif (Xpeng), and PT Inchape Indomobil Energi Baru (GWM Ora). Together, these companies have pledged significant investments and production capacity in Indonesia.
These six companies have collectively planned to invest Rp15.52 trillion in the country and achieve a total production capacity of up to 305,000 units. This substantial commitment is a direct result of their participation in the incentive program, which was designed to stimulate investment in Indonesia's automotive sector.
The Industry Ministry is actively urging these beneficiary companies to fulfill their commitment to domestic production. This push is part of a broader strategy to localize the electric vehicle supply chain and reduce reliance on imported components and finished vehicles.
Mahardi Tunggul Wicaksono, Director of the Maritime, Transportation, and Defense Equipment Industry (IMATAP) at the Industry Ministry, previously emphasized that automotive manufacturers who have been receiving these incentives must meet their production obligations and comply with domestic content requirements starting in 2026. This mandate is crucial for ensuring the long-term growth and sustainability of the local industry.
From January 1, 2026, to December 31, 2027, manufacturers will be required to produce an equivalent number of electric vehicles domestically as their CBU import quota. This production must also adhere to specific Domestic Content Level (TKDN) regulations. This policy ensures that the benefits of the EV boom are shared with local manufacturers and suppliers.
"Throughout the process, companies must also pay attention to the value and amount of the TKDN," he stated. "From 40 percent, it must gradually increase to 60 percent."
Editor's Choice: Bahlil Confident Indonesia Will Pioneer the Future of EV Battery Industry
Click here to get the latest news updates from Tempo on Google News
Did Indonesia's Shrimp Radioactive Contamination Come from a Neighboring Factory?
3 jam lalu
The FDA added BMS to its import alert list for chemical contamination, temporarily banning the Indonesian exporter from selling its shrimp in the U.S.
Pertamina Refutes Claims of Fuel Monopoly in Indonesia's Private Gas Stations
16 jam lalu
The Pertamina CEO said the shortage at private gas stations is reportedly due to new import regulations and supply quotas.
U.S. Oil Imports by Country in 2024: Top Sources Revealed
19 jam lalu
Canada leads U.S. oil imports by country in 2024, supplying 61.7% of total volumes. Find out which other nations stand as the top source here.
Textile Association Urges Probe Into Illegal Secondhand Clothing Imports in Indonesia
3 hari lalu
KAHMI Tekstil alleges a well-structured syndicate is behind Indonesia's illegal secondhand clothing imports.
Indonesian Arrested by ICE During Raid at Hyundai Plant in the US
4 hari lalu
An Indonesian citizen is arrested by the US Immigration and Customs Enforcement (ICE) during a raid at the Hyundai electric vehicle plant.
Indonesia Confident It Won't Need Rice Imports Until End of 2025: Minister
6 hari lalu
Minister Andi Amran Sulaiman assured that Indonesia will not import rice until the end of 2025, citing strong production and ample reserves.
Indonesia Records Arms Imports Worth Rp1.06tn in 2025 First Half
6 hari lalu
BPS notes that Indonesia has imported various weapons worth Rp 1.06 trillion over the past seven months. Where are they from?
Minister Reports Indonesia's Trade Balance Increased in the First Half of 2025
7 hari lalu
The trade surplus increased due to the rise in the non-oil and gas surplus, which amounted to $34.06 billion compared to the same period last year.
Indonesia Prepares Incentive Scheme for Electric Motorcycle Purchase
8 hari lalu
Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, says that he had prepared an incentive scheme for the purchase of electric motorcycles.
Indonesian Govt to Revise Import Relaxation Rules If Found Disrupting Industry
12 hari lalu
Minister of Trade Budi Santoso asserts that Permendag 16 of 2025 may be revised if proven to threaten the sugar and downstream industries domestically
