The issue of providing incentives for hybrid cars has resurfaced in Indonesia following a statement by Agus Gumiwang Kartasasmita, the Minister of Industry of the Republic of Indonesia, expressing his desire to continue the idea. The Indonesian Automotive Industry Association (Gaikindo) has responded positively to this statement, viewing hybrid technology as having a positive impact on air quality in the country.
Gaikindo believes that hybrid cars should also receive incentives, although not as substantial as electric vehicles. Jongkie D. Sugiarto, Chairman of Gaikindo, stated, „We agree that hybrid cars should also receive incentives even though not as much as electric vehicles.“
In addition to reducing exhaust emissions, hybrids are also considered more fuel-efficient. This has a broad impact as it can reduce dependence on fossil fuels, which currently burdens the state budget. Jongkie also pointed out that hybrid cars produce lower pollution levels because the internal combustion engine in these vehicles operates less frequently. This is because most of the propulsion is done by the electric motor, especially at low speeds or when stopped.
One of the main advantages of hybrid cars over Battery Electric Vehicles is their ability to operate immediately without requiring charging infrastructure. External charging is not necessary because the battery is automatically recharged while the unit is in operation. Jongkie added, „Thanks to this, the production costs are not as high as BEVs and are affordable for the general public.“
Earlier reports stated that the government would not introduce new policies for the automotive sector this year. This was announced by Airlangga Hartarto, the Coordinating Minister for Economic Affairs, at the beginning of August 2024. He mentioned that hybrid car sales are already high even without government assistance. Therefore, incentives are deemed unnecessary, and the market mechanism should be followed to ensure sustainability.
It is worth noting that hybrid vehicles are subject to Luxury Goods Sales Tax (PPnBM) ranging from 6-12 percent. This is different from BEVs, which receive various facilities, ranging from 0 percent PPnBM to the government covering VAT. This differential treatment is seen as hindering the development of vehicles in Indonesia.
In conclusion, the support from Gaikindo for the proposal to provide incentives for hybrid cars in Indonesia highlights the potential benefits of promoting this technology. With its positive impact on air quality, fuel efficiency, and lower pollution levels, hybrid vehicles could play a significant role in the country’s automotive industry and environmental sustainability efforts.