Indonesian Political, Business & Finance News

Coordinating Minister Airlangga: EV incentives still under evaluation

| Source: ANTARA_ID Translated from Indonesian | Economy
Coordinating Minister Airlangga: EV incentives still under evaluation
Image: ANTARA_ID

Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that the incentive policy for electric vehicles (EV) is still in the evaluation stage, alongside the government’s preparations to develop a national car programme.

Airlangga noted that the government has not yet confirmed whether EV incentives will come into effect in August 2026, as previously discussed.

“It will still be evaluated, especially as we are preparing the national car,” Airlangga said when met at the Smesco Building, Jakarta, on Monday.

This statement was made by Airlangga while responding to questions regarding the certainty of the timing for EV incentive implementation and the reasons why the policy has not yet been implemented.

However, Airlangga did not further explain the government’s considerations regarding the delay in implementing electric vehicle incentives.

The government is currently reviewing the provision of incentives to boost electric vehicle sales and simultaneously strengthen the domestic EV industry ecosystem.

Nevertheless, the government has not yet announced a final decision regarding the form or the timing of the implementation of these incentives.

According to data from the Association of Indonesia Automotive Industries (Gaikindo), sales of battery electric vehicles (BEV) in the first quarter of 2026 reached 33,150 units, an increase of 95.9 per cent compared to the same period the previous year.

Meanwhile, the population of electric motorcycles in February 2026 was recorded at 236,451 units, representing approximately 65 per cent of the total national electric vehicle population.

Finance Minister Purbaya Yudhi Sadewa revealed in May 2026 that the government is preparing electric vehicle incentives targeted to cover 100,000 electric cars and 100,000 electric motorcycles this year.

For electric motorcycles, Purbaya estimates the incentive value at Rp5 million per unit. Meanwhile, the amount of subsidy for electric cars remains unknown.

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