Who has priority here?

Your choice is correct: the red car has priority.

The key rule here is that a police officer’s hand signals override traffic lights and signs. In the picture, the officer is standing in the middle and is turned sideways to the traffic coming from your direction and from the motorbike’s direction. “Officer sideways” means: traffic from the sides may go. At the same time, traffic coming from the direction the officer is facing or has their back to must stop.

So you and the motorbike have to wait, because you are approaching the officer from the front/back direction. The red car is approaching from the side, so it may proceed.

Rule of thumb for similar questions: always check for police control first; then interpret the officer’s body position (sideways = go, face/back = stop), and only after that consider traffic lights and priority rules.