Indonesia's electric-car market has grown quickly in 2026. Wholesales of battery-electric vehicles (BEVs) reached about 101,000 units in January–August 2026, roughly double the same period last year. That already exceeds the annual target of 100,000 electric cars set out by Finance Minister Purbaya Yudhi Sadewa, ANTARA reported.

The next phase will be harder. The incentive that let manufacturers import fully built EVs without duties ended on 31 December 2025. From 2026, those companies must start producing locally.

The numbers so far

Figures from the Association of Indonesian Automotive Manufacturers (Gaikindo) are wholesale data: shipments from manufacturers to dealers, not retail sales to consumers.

Powertrain Jan–Aug 2026 (units) Change vs Jan–Aug 2025
Battery electric (BEV) 101,171 +99.4%
Hybrid (HEV) 58,040 +43.3%
Plug-in hybrid (PHEV) 8,981 +223.8%

Source: Gaikindo data as reported by CNN Indonesia. Dataloka, also using Gaikindo data, puts BEV wholesales at 101,715 units. Small differences between outlets are common in preliminary data.

Total car wholesales over the same eight months were 599,491 units, iNews reported from Gaikindo figures. On NDNews' calculation from these numbers:

  • BEVs accounted for about 16.9% of all new cars wholesaled.
  • All electrified cars together (BEV, HEV and PHEV) accounted for about 28%.

The pace has also picked up during the year. ANTARA reported first-quarter BEV sales of 33,150 units, up 95.9% year on year. That means about 68,000 units were wholesaled between April and August, averaging roughly 13,600 a month, against about 11,000 a month in the first quarter (NDNews calculation).

Momentum continued into the second half. August BEV wholesales were 17,413 units, up from 13,972 in July, while hybrids fell 4.2% month on month.

Who is selling

Chinese brands dominate the BEV segment. According to Dataloka's compilation of Gaikindo data for January–August 2026:

Brand BEV units Share
BYD 33,273 32.7%
Jaecoo 23,359 23.0%
Geely 12,176 12.0%
Wuling 8,905 8.8%
Aion 5,034 5.0%

The top five brands account for more than 80% of BEV wholesales.

The incentive that ended — and the obligation that replaced it

Much of the early growth rested on a scheme under Presidential Regulation No. 79 of 2023. It allowed participating manufacturers to import completely built-up (CBU) EVs exempt from import duty and luxury-goods sales tax (PPnBM). The benefit period ended on 31 December 2025, as reported by OTO.com citing the Ministry of Industry.

In exchange, participants committed to:

  • Produce locally, from 1 January 2026, a volume equal to the import quota they received.
  • Meet a local-content requirement (TKDN) of at least 40%, rising to 60% in 2027–2029 and 80% by 2030.

Six companies took part: BYD Auto Indonesia, VinFast, Geely Motor Indonesia, Era Industri Otomotif (Xpeng), National Assemblers, and Inchcape Indomobil Energi Baru. Together they committed about Rp15 trillion in investment and 305,000 units of annual capacity, according to the same report.

What TKDN means in practice

TKDN (Tingkat Komponen Dalam Negeri) measures how much of a product's value comes from Indonesian inputs, including parts, materials, labour and assembly. Lower thresholds are typically reached through local assembly combined with a limited set of domestically sourced components.

The step-up to 60% and then 80% is far more demanding. It would require battery packs, motors and other major components to be sourced or manufactured in Indonesia. The Ministry of Industry has said the increase will come in stages through part-by-part manufacturing. That is where the country's ambition to move from assembling EVs to building an EV supply chain will be tested.

Industry Minister Agus Gumiwang Kartasasmita said the ministry "will no longer issue CBU permits" under the incentive scheme (NDNews translation).

New incentives are on the table

The government is now discussing what comes next. On 27 July, Coordinating Minister for Economic Affairs Airlangga Hartarto said a subsidy of Rp5 million per electric motorcycle was under consideration, ANTARA reported. Support for electric cars was still being evaluated, and the scheme could be linked to national car or motorcycle programmes.

"We will see whether this is linked to the national car or national motorcycle program," Airlangga said. The final format and timing have not been announced.

What will decide the next stage

  1. Whether local production keeps prices competitive. If local assembly and rising TKDN requirements add costs, EV prices relative to petrol cars could change.
  2. The design of any new subsidy. Whether support favours locally built vehicles, national-brand programmes, or two-wheelers will shape which manufacturers expand.
  3. Wholesale versus retail. Strong wholesales can reflect dealers building stock. Retail data and registrations will show whether consumer demand is keeping pace.
  4. The wider economy. Car buyers depend on credit, so higher borrowing costs after Bank Indonesia's 2026 rate increases matter here too (see our explainer on BI's hikes and borrowing costs).

Bottom line

The 2026 numbers show strong demand for electric cars in Indonesia. The shift from imported to locally built vehicles in 2026–2027 will test whether the industry can keep those prices while meeting rising local-content rules. It will also determine whether Indonesia becomes a regional production base rather than mainly a sales market.

This article was researched with AI assistance and reviewed by the NDNews editorial team. Sales figures are Gaikindo wholesale data as reported by the linked outlets, as of 25 September 2026.