Finance Minister Purbaya Reveals Rp 5 Million Subsidy per Electric Motorcycle Unit, What About Cars?

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa stated that the government is preparing subsidies for electric vehicles to begin in June. According to him, there will be 200,000 units of electric vehicles, comprising 100,000 motorcycles and 100,000 cars, that will receive subsidies or PPN discounts.

He revealed that the subsidy for electric motorcycles will be Rp 5 million. Meanwhile, the amount of subsidy for electric cars has not yet been disclosed by Purbaya.

“Approximately, how much will we give for electric cars? 100,000 first subsidies. If they run out, we’ll give more. Electric motorcycles are the same. We’ll give the first 100,000. How much? Rp 5 million,” said Purbaya, quoted on Thursday (7/5/2026).

Purbaya explained that the distribution scheme is still in the finalisation stage. The policy scheme will be further announced by the Ministry of Industry and the Coordinating Ministry for the Economy.

“L Later, the scheme will be explained by the Minister of Industry, and the Minister of Economy will also explain it,” said Purbaya.

However, he assured that the quota will be given to 100,000 electric cars and 100,000 electric motorcycles. If that quota is exhausted, Purbaya will add more quotas, considering the domestic EV production capacity of 300,000 units for cars and millions for motorcycles.

“What has been discussed is still raw, 100,000 cars and 100,000 motorcycles. Later, if short (add) another 100,000 and 100,000,” said Purbaya.

Before being announced in June, Purbaya said he will report to the President first.

“I also have to report to the President. Because basically, the President’s statement is that we reduce BBM consumption and move to electric,” said Purbaya.