Confirmed! Purbaya to Provide Incentives for 100,000 New Electric Vehicles

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has decided to provide purchase incentives for electric vehicles. These incentives will apply to 100,000 units in the initial phase. However, he emphasised that there will be no limit to the incentives, as if the 100,000-unit purchase target is reached, more will be added continuously. “Roughly, for electric vehicles, we will provide incentives for 100,000 electric vehicles. If they run out, we’ll give more; if they run out again, we’ll give more,” Purbaya said at his office in Jakarta on Tuesday (5/5/2026). Purbaya has not yet detailed the form or amount of the incentives. He stressed that the details of the incentive provision are being formulated by the Ministry of Industry, similar to the incentives in the form of subsidies for electric motorcycles. “The scheme is handled by Menperin (Minister of Industry Agus Gumiwang Kartasasmita). It’s the same for electric motorcycles; if they run out, we’ll give more; if they run out again, we’ll give more,” he stated. He estimates that this policy will be completed and can take effect in June 2026. The goal is to reduce consumption of petroleum fuel and encourage the use of environmentally friendly energy.