Indonesia Weighs EV Incentives, Finance Minister Says

5 hours ago 3

April 10, 2026 | 11:03 pm

TEMPO.CO, Jakarta Indonesian Finance Minister Purbaya Yudhi Sadewa announced that discussions are underway with relevant authorities and industry players regarding incentives for electric vehicles (EVs).

For example, Purbaya said he had discussed electric cars with the Association of Indonesian Automotive Industries (Gaikindo), as quoted by Antara.

"Gaikindo invited us to attend the car exhibition, but also to discuss, for example, what incentives are needed for electric cars and so on," Purbaya told reporters at the Attorney General's Office in Jakarta on Friday. He said that the discussion with Gaikindo is not yet finished and will continue at the next meeting.

Regarding electric motorcycles, meanwhile, Purbaya stated that he is coordinating with the Minister of Industry, Agus Gumiwang Kartasasmita. The incentives will target the latest generation of electric motorcycles.

"I'm still discussing it with the Minister of Industry to see if there will be incentives for new electric motorcycles," he said.

Minister of Industry Agus Gumiwang Kartasasmita expressed a similar sentiment. Regarding electric motorcycle incentives, the minister stated that his party has communicated with the Ministry of Finance and emphasized that the amount of the incentives is still under discussion.

"It's still being discussed," said the minister when met in Jakarta, Thursday. He said that the government is currently drafting regulations to encourage the rapid adoption of electric vehicles, especially motorcycles.

Meanwhile, the production of conventional motorcycles will continue, but will be directed towards meeting the needs of the export market, particularly in non-traditional regions. He also conveyed that President Prabowo Subianto emphasized in his directive that all future vehicles would be electric, in line with the growing importance of reducing dependence on fossil fuels.

"Yes, because the importance of doing so is increasingly apparent, reducing our dependence on fossil fuels. So, there really is no other choice but to convert to electricity," he said.

Read: Indonesia to Prioritize Electric Motorcycles for Domestic Market

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