August 4, 2026 | 09:04 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa confirmed that incentives for electric vehicles (EVs) will be available by mid-year. The purchase relief facility is slated for announcement within the next two to three weeks.
"The President will launch additional incentives, including EVs, covering 500,000 motorcycles and cars," he stated at the Indonesia Convention Exhibition (ICE BSD City) in Tangerang on Tuesday, August 4, 2026.
The incentive package will include a 100 percent government-borne value-added tax (VAT DTP) and a 40 percent reduction for certain electric cars. The complete framework will be disclosed upon its official launch.
Purbaya noted that the incentives apply specifically to battery electric vehicles (BEVs) rather than hybrids. However, financial relief will also factor in the battery specifications used. "Nickel-based and lithium-based batteries are calculated slightly differently," he explained.
The government originally planned to roll out the EV purchase incentives last June. The timeline was postponed due to a structural overhaul in the scheme, shifting from individual EV subsidies to company-specific allocations. Initial targets promised allocations of 100,000 units for electric cars and motorcycles, respectively.
Purbaya emphasized that backing electric vehicles actively reduces reliance on crude oil imports. Oil prices have surged sharply amid global volatility stemming from conflicts between the United States and Iran.
He expressed a desire for the government to stimulate robust consumer demand to support growth across automotive manufacturers. Concurrently, the government plans to refine the investment climate to ensure business operations proceed seamlessly.
"The government remains committed to providing fiscal support that is both tangible and predictable," he said.
Read: Indonesia Secures US$350 Million EV Battery Investment from Australia
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