EV policy certainty needed for car dealers — don’t leave them hanging
In the midst of the transition in the electric vehicle market, industry players say the main issue is no longer how large or small the incentives are, but policy direction certainty. Regulations that change repeatedly are seen as having a psychological effect on consumers, causing the market to move hesitantly even as demand for electric vehicles continues to grow.
The government previously introduced various stimuli, from value-added tax funded by the Government (PPN DTP) for electric cars to subsidies for electric motorcycles. However, schemes that frequently change and lack continuity are seen as creating a ‘wait and see’ pattern among prospective buyers.
But policy ambiguity remains the main obstacle. ‘For me, incentives should not exist at all. Because this causes uncertainty about the Indonesian electric vehicle market,’ said Hariyadi in South Jakarta, Monday 2 March 2026.
He said that the ongoing talk of incentives that continue to change makes consumers postpone purchases in the hope of additional price cuts. In such conditions, the market does not move much, even though needs and interest exist. ‘The EV market benefits most from certainty. Don’t leave it hanging, because customers hold back from buying,’ he said.
A similar experience he felt when involved in the electric motorcycle business when the government provided a subsidy of Rp 7 million per unit. At that time, the price of electric motorcycles, which previously ranged around Rp 22 million, fell to around Rp 15 million, and sales rose significantly. But the situation reversed when the incentives ended. Sales slowed again, even nearly stopped, especially when there were promises that the subsidy would be reintroduced without a definite timeframe. ‘They promised there would be more next year. During that waiting period, there were almost no transactions. Consumers all held back,’ he said.
On the other hand, Hariyadi believes the electric car market is entering a more mature phase. Advances in technology and production efficiency are making the price of electric vehicles more rational and competitive compared with conventional cars. Several models, he says, are no longer positioned as secondary vehicles, but are already suitable to be the family’s main car. Therefore, he believes medium- and long-term policy certainty is a key factor in maintaining the momentum of electric vehicle growth in Indonesia. Without a clear regulatory direction, market potential risks being held back again even as products and prices become more competitive.