Leading players in the Indonesian automotive industry are urging the government to reintroduce tax incentives to revitalize the domestic car market by 2026. Industry giants like Toyota, Honda, and Jetour highlight that current market conditions remain stagnant, necessitating strategic fiscal intervention to stimulate demand and maintain production stability. Marketing Director of PT Toyota-Astra Motor, Jap Ernando Demily, pointed to the 2021 PPnBM relaxation as a successful precedent, where sales surged by over 66% after similar policy implementation. He emphasized that such incentives act as a vital catalyst for the entire industrial ecosystem, from upstream manufacturing to downstream sales, ensuring the sustainability of the national automotive supply chain.
Similarly, representatives from Honda Prospect Motor and Jetour Sales Indonesia noted that direct consumer incentives are crucial for accelerating purchasing decisions amidst weakened consumer buying power. While the industry remains optimistic about reaching high production targets, including the 1-million-unit milestone, they stress that success depends on a fair and comprehensive policy that supports all vehicle technologies. The industry expects the government to formulate balanced fiscal measures that not only boost short-term sales but also strengthen the long-term foundations of the national economy and support the transition toward sustainable mobility.
