Who has priority here?

You answered correctly. The red car has priority in this situation. The reason is that a police officer is directing traffic, and their instructions always override traffic signs and signals. Here, the officer is raising an arm toward your direction, which means “Stop” for you and the motorbike, but allows the red car to proceed. In such cases, always follow the police officer’s hand signals, not the traffic lights or priority signs. Remember: a police officer's instruction is the highest authority at intersections.