EV Incentives Delayed Until August, Purbaya Speaks Out
Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa stated that he has not yet received further information regarding the one-month delay in the planned provision of special incentives for electric vehicles (EV), which were previously scheduled to take effect next month.
Previously, the Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that electric vehicle incentives are still being reviewed and that implementation will likely be postponed until this coming August.
Purbaya noted that Minister Airlangga has not yet communicated the details regarding the delay of this policy implementation.
“Perhaps the preparations are not yet sufficient. He (the Coordinating Minister) has not spoken to me; I remember it being delayed by one month. Perhaps another month is needed,” he said at the House of Representatives (DPR RI), following a working meeting with the Budget Committee (Banggar) on Monday (29/06/2026).
Purbaya emphasised that he will communicate with Coordinating Minister Airlangga regarding the postponement of this policy implementation.
Last week (23/06/2026), Airlangga mentioned that the government is implementing electric vehicle subsidies until August 2026. Previously, the government had promised a subsidy of Rp5 million for electric motorcycles and a VAT discount for electric cars.
Purbaya had previously stated that the government is preparing electric vehicle subsidies to commence this June. According to him, there are 200,000 electric vehicle units—comprising 100,000 motorcycles and 100,000 cars—that will receive subsidies or VAT discounts.
He disclosed that the subsidy provided for electric motorcycles is Rp5 million. Meanwhile, the amount of the subsidy for electric cars has not yet been revealed by Purbaya.
“Roughly, how much will we give for electric cars? The first 100,000 units will receive a subsidy. If that runs out, we will provide more. It is the same for electric motorcycles. For the first 100,000, we will provide Rp5 million,” Purbaya said last month (07/05/2026).
Purbaya explained that the distribution scheme is still in the finalisation stage. The policy scheme will be announced further by the Ministry of Industry and the Coordinating Ministry for Economic Affairs.
“Later, the Minister of Industry will explain the scheme, and the Coordinating Minister for Economic Affairs will also explain it,” said Purbaya.
However, he ensured that the quota will be allocated to 100,000 electric cars and 100,000 electric motorcycles. If the quota is exhausted, Purbaya will increase it, considering the domestic EV production capacity is 300,000 units for cars and millions for motorcycles.
“What has been discussed is still preliminary: 100,000 cars and 100,000 motorcycles. If it is insufficient, we will add another 100,000 and another 100,000,” said Purbaya.