EV incentives provide a welcome boost to Indonesia's electric vehicle industry

General Moeldoko, retired four-star General and chairman of the Indonesian Electric Vehicle Industry Association (Periklindo), said that policy incentives for electric vehicles could be a breath of fresh air for consumers and bring renewed optimism for Indonesia’s burgeoning electric vehicle industry. He said this during a press conference announcing the launch of the Periklindo Electric Vehicle Show (PEVS) 2026 in Jakarta on Thursday. He also hoped the incentives should be broadened, not only for passenger cars and two-wheelers but also for commercial vehicles such as buses, trucks, and logistics vehicles. By expanding incentives to the commercial transport sector, the government could accelerate the transition to environmentally friendly transport and reduce reliance on diesel subsidies. Electrification of commercial vehicles also aligns with the government’s efforts to improve urban air quality and strengthen its future net-zero emissions targets. ‘Therefore, these incentives are Periklindo’s hope—not only for the passenger car segment but also for commercial vehicles. For example, buses, trucks and logistics vehicles — because they contribute a substantial share of emissions,’ he said. Moeldoko said the electric motorcycle subsidy program should be targeted and well-directed, prioritising the transport sector based on public service such as online ride-hailing drivers and ride-hailing companies. ‘My hope as the head of Periklindo is that the motorcycle subsidy programme should be considered. One priority, perhaps, could be the corporate transport sector,’ he said. Separately, the Government of Indonesia, via the Ministry of Finance, is preparing a policy to provide 100,000 electric cars and 100,000 electric motorcycles this year. The PPN DTP incentive is dedicated to EVs and does not apply to hybrids. Regarding the scale of the incentive, it will be determined based on the battery type used, categorised into nickel-based and non-nickel batteries.