Finance Chief Pledges Tax Harmony and Leasing Safeguards at GIIAS 2026 to Support Automotive Sector

TANGERANG, Investortrust.id — Indonesia’s government is moving to realign tax frameworks and bolster credit safeguards for the automotive industry, signaling strong state backing as manufacturers navigate systemic financing constraints and regional regulatory shifts.

Speaking as the keynote speaker at the Gaikindo International Automotive Conference (GIAC) during the Gaikindo Indonesia International Auto Show (GIIAS) 2026 at ICE BSD City on Tuesday, Aug. 4, 2026, Finance Minister Purbaya Yudhi Sadewa assured industry leaders that federal fiscal policy will directly support market expansion.

Indonesia's automotive sector serves as a primary barometer for industrial production, retail consumption, and credit growth in Southeast Asia's largest economy. With consumer vehicle purchases heavily reliant on multi-finance credit, policy alignment between regional tax authorities and central finance regulators is vital to maintaining vehicle adoption rates—particularly for electric vehicles (EVs)—and preserving systemic liquidity across non-bank financial institutions.

Tax Harmonization and Financing Protections

Following the conference, Minister Purbaya met with Anton Kumonty, Co-Chairman of the Association of Indonesia Automotive Industries (Gaikindo), to address pressing operational bottlenecks facing national automakers and financing firms.

The two critical regulatory friction points raised during the executive discussions include electric vehicle tax alignment and consumer leasing safeguards. Addressing proposed local electric vehicle tax adjustments in Jakarta, Purbaya emphasized that municipal tax structures for battery-powered electric vehicles must strictly align with central government policies. Unifying central and regional tax rules is regarded as essential for maintaining market predictability and investor confidence.

To counter elevated non-performing loans caused by defaulting borrowers and lost collateral units, the Finance Ministry is drafting legal protections and fiscal rules for leasing institutions. High default risks previously forced multi-finance firms to raise down-payment requirements, curbing vehicle sales nationwide.

"The Finance Minister expressed direct enthusiasm for the national automotive industry and stated his readiness to support initiatives that ensure its long-term growth," Kumonty noted following the meeting.

Exhibition Tour and National Expansion

During a two-hour tour of the GIIAS exhibition floors, Minister Purbaya inspected new model lineups and tested several vehicles on display. The 2026 flagship event in BSD City, running from July 30 to Aug. 9, features major financial partners, including Astra Credit Companies and Toyota Astra Finance.

Following the Tangerang leg, the GIIAS 2026 series moves to Surabaya (Aug. 26–30), Bandung (Sept. 9–13), Semarang (Sept. 30–Oct. 4), and Makassar (Oct. 28–Nov. 1). Gaikindo will further expand its national footprint by launching GIIAS Bali at The Meru Sanur from Jan. 27–31, 2027.