Imported EVs prices in Indonesia could increase by 70%: analysis

Indonesia’s government will end tax incentives for imported EVs in 2026, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.

The current policy exempts fully built imported EVs from a 50% import duty, and reduces luxury sales tax and VAT, cutting the total tax from 77% to 12%.

From 2026, EV makers must meet a 40% local content requirement, rising to 60% in 2027, and 80% by 2030, with a shift to local assembly also required.

Without the incentives, imported EV prices in Indonesia could rise by around 70%, based on calculations from the Ministry of Industry.

For example, the price of BYD’s Denza D9 could jump from 950 million rupiah (US$56,601) to over 1.6 billion rupiah (US$95,328) in 2026, while the Aion Hyper HT Premium could rise from 691 million rupiah (US$41,171) to over 1.1 billion rupiah (US$65,538).

The increases are due to the reinstated import duty, luxury tax, and VAT on models with low local content.

🔗 Source: Bloomberg Technoz

🧠 Food for thought

Implications, context, and why it matters.

Indonesia’s local content rule (Tingkat Komponen Dalam Negeri, TKDN) is set for 2026 with some public gaps

Government set a 40% TKDN threshold for 2026 with a production-obligation window from 1 January 2026 to 31 December 2027. Public materials leave the TKDN calculation method unclear 1.
CBU import incentives end after 31 December 2025. Without listed exemptions or transition waivers, full taxes resume on imports that fail TKDN starting 1 January 2026 2.
Reaching 60% TKDN in 2027 will drive a shift from Completely Knocked Down (CKD) assembly to Incompletely Knocked Down (IKD) manufacturing. Definitions and checks remain vague in public materials 1.
EV buyers looking at late 2025 purchases face unknowns on 2026 prices and supply as incentives wind down. The industry still waits for any added 2026 support beyond what is set to lapse 3.

Compliance software can win work from Original Equipment Manufacturers (OEMs) that track and certify local content

Six automakers in the CBU incentive program must meet TKDN thresholds starting in 2026 with investments of about Rp15 trillion (Indonesian rupiah) 1.
Tools that automate supplier discovery and component checks can generate TKDN packets ready for audits. These tools can support scale toward 305,000 units of capacity 1.
Complexity rises as targets move from 40% to 60% TKDN in 2027. Manufacturers will shift from simple assembly to deeper part-by-part production 2.
Platforms that link certified Indonesian suppliers with OEMs while tracking TKDN milestones can fill a gap in the localization schedule 4.