Posted in

Indonesia targets June rollout for EV incentives

Jakarta (ANTARA) – Indonesia's Finance Minister Purbaya Yudhi Sadewa is targeting the implementation of incentives for electric vehicles (EVs), including electric motorcycles and cars, starting in June 2026 to reduce fuel consumption.”We will calculate and prepare the budget. What is clear is that I want it to be implemented starting in early June,” he said at a press conference of the Financial System Stability Committee (KSSK) in Jakarta on Thursday.Purbaya emphasized that the purpose of the EV incentive policy is to shift people’s consumption patterns from fuel to electricity.He said the policy is expected to reduce Indonesia’s imports of fuel and crude oil.”This will help strengthen our economic resilience. So, do not focus on the subsidy itself. The main goal is to make our economy more resilient from the energy side,” Purbaya said.He said the government is preparing EV incentives for 100,000 electric cars and 100,000 electric motorcycles this year.For electric motorcycles, the government has allocated Rp5 million (US$289) per unit.Meanwhile, electric cars will receive government-covered value-added tax (VAT) incentives ranging from 40 to 100 percent.The VAT incentives apply only to EVs and do not cover hybrid vehicles.The amount of incentives will depend on the type of battery used, namely nickel-based and non-nickel batteries.”For cars, the incentives will vary. Some will receive 100-percent VAT coverage, while others 40 percent. It depends on the battery,” Purbaya said.He previously explained that nickel-based EVs would receive larger subsidies as part of efforts to promote nickel, one of Indonesia's leading commodities.