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Jakarta pulls plug on EV import perks, raising stakes for Chinese auto giants

Imported battery EVs account for about 64% of Indonesia’s total EV sales; ending incentives could hurt demand

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Elisa Valenta

Elisa Valenta

Published Thu, Sep 25, 2025 · 12:20 PM
    • Denza, BYD’s premium marque, has gained rapid traction in Indonesia, selling more than 6,500 units since its January debut and capturing a 1% market share within just a few months.
    • Denza, BYD’s premium marque, has gained rapid traction in Indonesia, selling more than 6,500 units since its January debut and capturing a 1% market share within just a few months. PHOTO: DERRYN WONG, BT

    [JAKARTA] Indonesia will scrap tax incentives for battery electric vehicles (EVs) that are imported, starting from January 2026. The move could hurt Chinese EV makers’ momentum in South-east Asia’s largest economy, where they still rely heavily on imports to build brand presence.

    The move could also weigh on Indonesia’s auto sector, which is already grappling with softer sales amid weakening consumer demand.

    The country has two different schemes for EVs – one for domestically assembled models and another for fully built-up imports. Locally produced EVs benefit from a significantly lower tax burden.

    IndonesiaAsia-PacificElectric vehiclesBYDTransport

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