Finance Minister Purbaya Reveals President to Announce EV Incentives Directly, BEV to Be Prioritised

The government plans to reintroduce incentives for electric vehicles in the near future. Finance Minister Purbaya Yudhi Sadewa said President Prabowo Subianto is scheduled to announce the stimulus package personally within the next two to three weeks.

Purbaya said the government is preparing incentives for around 500,000 electric motorcycles and electric cars. The official announcement of the scheme, according to Purbaya, will be made by the President once deliberations are completed.

“I think within two or three weeks from now, the President will launch the EV stimulus again, including for around 500,000 electric motorcycles and electric cars,” Purbaya said at the opening of the GAIKINDO Indonesia International Auto Show (GIIAS) 2026 at ICE BSD City, Tangerang, on Tuesday (4/8/2026).

According to Purbaya, the incentives being prepared include an exemption from the Luxury Goods Sales Tax (PPnBM) of up to 100 per cent, as well as a Government-Borne Value Added Tax (PPN DTP) incentive of 40 per cent for vehicles meeting the criteria set by the government.

Nevertheless, he signalled that the policy will likely apply only to battery electric vehicles (BEVs). Hybrid and plug-in hybrid electric vehicles (PHEVs) are expected to be excluded from the incentive scheme for now.

“I have not heard of such a plan. What I have heard is EVs only. Nickel-based batteries and lithium-based batteries also differ slightly,” he said.

Previously, the government included the development of national cars and motorcycles as one of the National Priority Work Programmes (PKPN) in the Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) 2027, particularly under the downstreaming and industrialisation agenda.

Minister of Industry Agus Gumiwang Kartasasmita has also stated that the government will prioritise electric vehicle incentives for national-brand cars as an effort to strengthen the domestic automotive industry.

However, the government has yet to explain in detail the criteria for a “national-brand car”, including whether it covers only brands owned by Indonesian companies, or also vehicles with a high local content level (TKDN) produced in Indonesia.

The government has also not confirmed whether the incentives will be given to all electric vehicle manufacturers producing in Indonesia or only to national brands. Clarity on the scheme will be announced alongside the launch of the policy by the President in the coming weeks.