Indonesia Plans EV Incentives for 200,000 Vehicles This Year

TEMPO.CO, Jakarta - Indonesian Finance Minister Purbaya Yudhi Sadewa said the government is preparing incentives for electric vehicles (EVs), targeting 100,000 electric cars and 100,000 electric motorcycles this year.

“The first 100,000 units, and if they are fully taken up, we will provide more incentives,” Purbaya said at a press conference on the state budget report, APBN KiTa, in Jakarta on Tuesday.

He added that the detailed scheme will be announced by Industry Minister Agus Gumiwang Kartasasmita and Coordinating Minister for Economic Affairs Airlangga Hartarto.

He estimated that subsidies for electric motorcycles could be around Rp5 million (about US$310) per unit, although the final figures will be confirmed later in coordination with relevant ministries.

Purbaya said his interest in EV incentives was reinforced following a meeting earlier in the day with Agus Gumiwang. The policy, he noted, aligns with efforts to curb fuel consumption and reduce the government’s energy subsidy burden amid rising global oil prices.

“I am interested in the proposal to provide subsidies for electric vehicles. In addition to boosting consumption, we can reduce fuel use. If accelerated, this could strengthen the resilience of our state budget going forward,” he said.

He agreed with the Industry Ministry’s view that EV development should be part of a broader strategy to strengthen the national economy, particularly by supporting the manufacturing sector and protecting jobs.

“This is aimed at driving economic growth in the near term, especially in the third and fourth quarters. We expect implementation to begin in early June,” Purbaya said, adding that the policy has been discussed but will be formally announced by the relevant ministers.

“Our focus now is to ensure all engines of the economy are running. We are pushing demand, and we are also supporting the manufacturing sector,” he added.

Earlier, Industry Minister Agus Gumiwang said EV incentives are becoming increasingly relevant not only for emissions reduction goals but also due to shifting trends in the automotive market toward electric vehicles, driven by geopolitical tensions and energy uncertainty.

In addition to discussing EV stimulus, Agus said the two ministers also explored measures to boost Indonesia’s manufactured exports.

Read: Purbaya Pledges Tax Incentives for Bali IFC Investors

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