Jakarta, Sept. 12 -- 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 I...