This article is part of the 2026 monthly insight report series on the Indonesian automotive market. Subsequent installments will cover in-depth country-specific automotive market studies on Thailand, Malaysia, Morocco, Italy, Germany, the United Kingdom, Canada, Australia, Spain, Brazil, South Africa, Saudi Arabia, the United Arab Emirates, Turkey, and the Nordic Four (Sweden, Norway, Finland, Denmark).
01 Policy Trends: Indonesia Targets BEVs with Nickel-Based Batteries for Directed Support
On the consumption side, Indonesia's Finance Minister confirmed that the new round of electric vehicle incentive schemes originally scheduled for June 2026 has been officially postponed by one month to July 2026. Indonesia's new EV incentives continue to exclude hybrid vehicles in favor of Battery Electric Vehicles (BEVs), particularly those adopting nickel-based battery technologies. BEVs utilizing nickel-based ternary batteries are eligible for a 100% VAT exemption (from the standard 11% rate), while non-nickel-based batteries (such as Lithium Iron Phosphate, LFP) only receive a 40% VAT exemption. On the resource side, Indonesia plans to impose export taxes and windfall profit taxes on nickel, and is collaborating with the Philippines to establish a "nickel corridor." This policy combination will accelerate the substitution of BEVs for hybrid models. For Chinese automakers, this is favorable for BYD, Wuling, Chery, GAC Aion, and others to maintain price competitiveness for their BEV models. However, it also means that models using non-nickel battery technologies will be at a disadvantage in terms of subsidy intensity.
02 Market Overview: BEVs Dominate NEVs in Jan-Apr, Chinese Brands Approach 20% Market Share in April
(I) Automotive Market Overview
From January to April 2026, the Indonesian automotive market exhibited a trend of "overall recovery with structural divergence." Wholesale vehicle sales reached 289,800 units, of which passenger vehicles accounted for 215,300 units (approximately 74.3%) and commercial vehicles for 74,500 units (approximately 25.7%). In April alone, wholesale sales reached 80,800 units, showing a significant rebound from March. Passenger vehicle sales grew 25.6% month-on-month, and commercial vehicle sales grew 51.4% month-on-month. This was primarily driven by the post-Eid demand surge (with dealers building inventory in advance), the substantial last-mile delivery demand for food and meals under Indonesia's nationwide free nutritious meal (MBG) program, and the concentrated commencement of infrastructure projects.
BEVs were the absolute majority of NEVs in the Indonesian market from January to April. This is due to superior tax incentives, priority project support (all 100,000 EV quotas allocated to BEVs), traffic access privileges, lower operating costs (BEV costs仅为 ICE vehicles' 1/5), and the cost advantage of locally sourced nickel-based batteries. From January to April 2026, wholesale sales of BEVs, HEVs, and PHEVs reached 47,781 units, 26,336 units, and 2,089 units respectively, with BEV sales accounting for approximately 62.7% of total NEV sales.
(II) Competitive Landscape
Japanese brands hold the majority share of the Indonesian automotive market, while Chinese brands have increased their market share to nearly 20%. From January to April 2026, the top four wholesale sellers were all Japanese brands — Toyota, Daihatsu, Mitsubishi Motors, and Suzuki — with combined sales of 183,000 units, accounting for approximately 63.2% of the total market. Chinese brands showed significantly accelerated growth. BYD ranked fifth with 17,098 units, Chery's Jaecoo ranked seventh with 11,284 units, and SAIC-GM-Wuling (Wuling), Geely, Chery, GAC Aion, and Denza all saw steady sales growth. From January to April 2026, Chinese brands recorded total wholesale sales of approximately 52,964 units, accounting for about 18.3% of the market. In April alone, Chinese brand wholesale sales reached approximately 15,851 units, with the share rising to 19.6%.
The passenger vehicle market remains dominated by Japanese brands including Toyota, Daihatsu, Mitsubishi Motors, Suzuki, and Honda. However, Chinese brands have rapidly entered mainstream sales brackets in BEV MPVs, BEV SUVs, compact EVs, and premium new energy MPVs. In the April wholesale sales figures, BYD ranked fifth with 4,625 units, and Jaecoo ranked seventh with 3,219 units. On a retail basis, BYD's sales reached 6,274 units, ranking third. This indicates that the breakthrough of Chinese automotive brands is not limited to factory wholesale distribution but is also steadily improving in terms of end-user deliveries and consumer recognition.
(III) Import and Export Situation
Indonesia's automotive industry exports maintained strong resilience from January to April. Data shows that CBU (Completely Built-Up) vehicle exports reached 159,662 units, CKD (Completely Knocked-Down) kit exports reached 25,791 sets, and component exports reached 54,976,055 pieces. During the same period, CBU imports stood at 25,014 units. In April, CBU exports reached 36,207 units, down slightly by 1.8% from March, while CBU imports reached 8,332 units, up 31.4% month-on-month. Overall, Indonesia remains a major ASEAN vehicle export base, with CBU exports approximately 6.4 times the scale of CBU imports.
03 Consumer Trends: Practical, Affordable Models Highly Popular; Auto Shows Effectively Stimulate Vehicle Purchases
The Indonesian automotive market emphasizes family multi-purpose use, low price points, low operating costs, and durability. MPVs, LCGCs, entry-level SUVs, and light commercial vehicles occupy the major market share. According to GAIKINDO's April best-selling model rankings, the Toyota Innova, Toyota Avanza, Toyota Veloz, Toyota Calya, Daihatsu Sigra, Honda Brio, and others featured prominently on the mainstream list. The strong sales of popular models such as the Innova, Avanza, Veloz, Calya, and Sigra reflect Indonesian consumers' preferences for multi-passenger capacity, family space, fuel efficiency, and low purchase costs.
Auto shows serve as an important concentrated promotional window for vehicle sales in Indonesia. The Indonesia International Motor Show (IIMS) is the country's most important automotive consumption event. IIMS saw average annual transaction value growth of approximately 23% from 2023 to 2025. During IIMS 2026, EV sales grew approximately 30% year-on-year, with BEVs accounting for over 40% of total vehicle transactions and Chinese brands comprising over 60% of new energy models on display. Auto shows have a strong pull effect on consumer purchasing decisions.
The energy crisis triggered by the U.S.-Iran-Israel conflict significantly boosted Indonesian NEV consumption. From March to May 2026, the Iran war and logistical disruptions in the Strait of Hormuz drove up global energy prices and placed pressure on Indonesia's fiscal position and fuel subsidies. In response to the impacts of the U.S.-Iran-Israel conflict, the Indonesian government plans to restrict subsidized fuel vehicle sales and promote EV incentive policies to reduce fuel consumption, alleviating energy subsidy pressure amid rising global oil prices.
04 Supply Chain: Indonesia Accelerates Development of Power Battery Industry Chain; Localization Requirements Continue to Escalate
At the current stage, Indonesia is prioritizing the introduction of power battery and related industry chain segments. Following its electrification transition, the industry chain's weak links have shifted from traditional components to cells, battery packs, battery management systems (BMS), electric motors, and electronic controls. The Indonesian government aims to leverage its nickel resource advantages to extend the industry chain from nickel mining, smelting, and precursor/cathode materials to cell manufacturing, battery pack assembly, and complete vehicle production. Currently, beyond the HLI Green Power battery plant — a joint venture between Hyundai Motor Group and LG Energy Solution — as the only operational cell production project in Indonesia, Chinese enterprises including Tsingshan Group, CATL, Gotion High-tech, and EVE Energy are the primary players establishing a presence.
Indonesia continues to advance the localization of its automotive industry chain, with local content requirements steadily tightening. In the short term, priority is given to deploying supporting components such as battery packs, wiring harnesses, thermal management systems, and interior and exterior trim. In the medium term, core components including cells and electronic controls are the focus for improving localization rates. Local policies favor nickel-based batteries, which differ from the mainstream LFP route in China, requiring automakers to weigh technology against cost considerations. The government is currently revising key TKDN component regulations to further increase the local content of Indonesia's EV industry.
05 Charging Infrastructure: Accelerated Expansion with Continuous Upgrades in Layout and Services
As of May 2026, Indonesia had approximately 4,892 public electric vehicle charging stations (SPKLU — Stasiun Pengisian Kendaraan Listrik Umum) nationwide, with a 2030 target of 62,918 stations (Source: Directorate General of Electricity, Ministry of Energy and Mineral Resources of the Republic of Indonesia). On May 20, Indonesia's state-owned electricity company PT PLN (Persero) inaugurated the nation's 5,000th SPKLU in Tanjung Priok, North Jakarta. The station is equipped with 2 units of 200kW ultra-fast chargers, 6 units of 120kW ultra-fast chargers, and 1 unit of 22kW medium-speed charger, along with two-wheeled vehicle charging and battery-swapping facilities, and supporting amenities including rest areas, restrooms, tire inflation stations, and vending machines. The facility primarily serves high-traffic scenarios such as ports, logistics, industrial zones, and urban commuting, reflecting the trend of Indonesia's charging infrastructure upgrading from single-point slow charging to integrated multi-service charging hubs.
Indonesia's charging infrastructure development is concentrated around the capital city and key tourist destinations. The Greater Jakarta area and core cities on Java Island see faster charging infrastructure deployment due to higher EV ownership, income levels, commercial activity, and more concentrated automaker channel networks. Bali has seen relatively active public charging deployment driven by tourism and international event activity. Outer islands are progressing gradually through regional hub cities and long-distance transport corridors.
06 Key Compliance Considerations: Indonesia's Automotive Industry Regulation Tightens; Overseas Enterprises Must Build Comprehensive Compliance Systems
Indonesia's automotive compliance framework continues to tighten. In addition to local content requirements, new multi-dimensional regulatory requirements have been introduced. On the technical front, companies must adapt to local charging interfaces and communication protocols, and complete environmental reliability testing for high-temperature and water-wading conditions. In the data domain, intelligent electric vehicles involve personal data and electronic system operations, requiring attention to PDP Law (Personal Data Protection Law, Law No. 27/2022) and PSE (Penyelenggara Sistem Elektronik — Electronic System Operator) registration compliance. Additionally, carbon markets, labor relations, and intellectual property have all been incorporated into routine regulatory oversight. Overseas enterprises must establish full-process compliance systems to mitigate policy risks.
