Jakarta (ANTARA) - The Indonesian government has confirmed that it will discontinue incentives for battery-powered electric vehicles (BEVs) imported in completely built-up (CBU) form, starting in 2026.

Until the end of 2025, incentives for imported BEVs include import duty exemptions and reduced luxury goods sales tax. To qualify, manufacturers are required to produce the same number of vehicles domestically as they import.

"We will no longer issue import permits for CBU BEVs under such an investment scheme to receive incentives," Industry Minister Agus Gumiwang Kartasasmita said in a statement on Friday.

The policy was further confirmed by Setia Diarta, the ministry's Director General of Metal, Machinery, Transport, and Electronic Industries (ILMATE). He stressed that manufacturers currently benefiting from the scheme must shift to local production of BEVs.

Currently, six companies are receiving CBU BEV import incentives: PT National Assemblers, which brings in Citroen, AION, and Maxus models; PT BYD Auto Indonesia; PT Geely Motor Indonesia; PT VinFast Automobile Indonesia; PT Era Industri Otomotif, which imports Xpeng vehicles; and PT Inchcape Indomobil Energi Baru, the importer of GWM Ora.

Collectively, these firms plan to invest Rp15.52 trillion (around US$947 million) in Indonesia, with a combined production capacity of 305,000 units.

Earlier, Mahardi Tunggul Wicaksono, Director of Maritime, Transportation, and Defense Equipment Industry (IMATAP), reminded manufacturers that they are obliged to begin producing BEVs domestically and comply with local content requirements (TKDN) starting in 2026.

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