Toyota Astra Motor (TAM), a subsidiary of Astra International (ASII), has announced that it will produce battery electric vehicles (BEVs) domestically. BEVs receive several government incentives, particularly for manufacturers committed to local production.

Head of Public Relations at Toyota Astra Motor (TAM), Philardi Sobari, stated that if Toyota later launches a BEV model, it will prioritise localising electric car production.

''We are still developing BEVs, and our focus will remain on localisation so that they become more affordable,'' Philardi explained at IIMS 2025 on February 18th.

Furthermore, following directives from Toyota's headquarters in Japan, all models currently imported as completely built-up (CBU) units have the potential to be produced locally in Indonesia. The models to be assembled locally include BEVs, internal combustion engine (ICE) vehicles, hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs).

''From a manufacturing and principal standpoint, it would be preferable if all our products were directed towards local production. If we achieve economies of scale and the market demand is strong, we will expand local production,'' he explained.

However, he was unable to confirm when local BEV production would begin in Indonesia. What is clear is that Toyota's electrification strategy in the country involves a transition from ICE vehicles to hybrids. ''We are prioritising a gradual transition and will not abandon hybrids. Ideally, ICE vehicles should transition to hybrids first because, in terms of lifestyle, the change is not too drastic,'' he added.

According to Minister of Finance Regulation (PMK) Number 12 of 2025, electric vehicles receive various government incentives. Additionally, hybrid vehicles benefit from a luxury goods sales tax (PPnBM DTP) incentive, which reduces the tax burden by 3% of the selling price.

As previously reported, the prices of the Innova Zenix Hybrid and Toyota Yaris Cross Hybrid have been reduced by up to IDR 13 million (US$ 795) following government incentives.

Toyota Astra Motor Marketing Director, Anton Jimmi Suwandy, stated that hybrid vehicles receive a 3% luxury goods sales tax (PPnBM DTP) incentive under PMK Number 12 of 2025. The regulation specifies that at least three categories of hybrid vehicles qualify for incentives: full hybrids, mild hybrids, and locally produced plug-in hybrids (PHEVs) classified as low carbon emission vehicles (LCEVs).

''Based on our calculations, the Kijang Innova Zenix HEV and Yaris Cross HEV could see a price reduction of around IDR 10 million to IDR 13 million thanks to the PPnBM DTP incentive,'' Anton said recently.

He added that Toyota has adjusted prices at the dealer level, and consumers should wait for dealers to update the on-the-road (OTR) prices for the two hybrid models. Anton also emphasised that customers who purchased the Innova Zenix Hybrid or Yaris Cross Hybrid (HEV) from 1 January 2025 onwards will receive a refund reflecting the difference in price after the incentive is applied.