Jakarta (ANTARA) – Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia said providing incentives for nickel-manganese-cobalt (NMC) electric vehicles is part of the government's strategy to expand the market for nickel-based EVs.Speaking in Jakarta on Monday, Bahlil noted that EVs equipped with lithium iron phosphate (LFP) batteries are not a priority for the government because Indonesia lacks the raw materials needed to manufacture them.Furthermore, Indonesia is currently building an ecosystem for EVs powered by nickel-based batteries. Consequently, the country's EV development will focus on nickel.He emphasized that nickel-based electric vehicles are superior to those powered by LFP batteries.“LFP is usually suitable for short-distance travel, but nickel remains more reliable for long-distance travel,” the minister said, expressing confidence that nickel-based EVs remain superior overall, despite being more expensive than LFP-powered models.Earlier in May 2026, Finance Minister Purbaya Yudhi Sadewa said that the Indonesian government was preparing EV incentives targeting 100,000 electric cars and 100,000 electric motorcycles this year.For electric motorcycles, Purbaya plans to allocate Rp5 million (approximately US$277) per unit. Meanwhile, incentives for electric cars will take the form of government-borne value-added tax, covering 40 to 100 percent of the tax.The tax incentive applies exclusively to battery electric vehicles and excludes hybrid models. The exact amount will depend on the type of battery used, categorized into nickel-based and non-nickel batteries.Coordinating Minister for Economic Affairs Airlangga Hartarto said the EV incentives will later be aligned with national development programs for electric motorcycles and electric cars.The Indonesian government is currently reviewing incentives to boost EV sales and strengthen the domestic EV industry ecosystem. However, it has yet to announce a final decision on the incentive structure or the timeline for its implementation.