Finance Minister Purbaya Targets Electric Vehicle Incentives Implementation from June

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa is targeting the implementation of electric vehicle (EV) incentives, both for electric motorcycles and electric cars, starting in June 2026, to reduce petroleum fuel (BBM) consumption.

“We will calculate and prepare the budget later. Clearly, I want it to be implemented starting from early June,” Purbaya stated during a press conference of the Financial System Stability Committee (KSSK) in Jakarta on Thursday.

Purbaya emphasised that the objective of the electric vehicle incentive policy is to change public consumption patterns, from previously using BBM to using electricity.

As such, he continued, Indonesia’s imports of BBM and crude oil could decrease.

“This helps our economic resilience, so do not view it merely as a subsidy. The main goal is to make our economy more resilient from the energy side,” Purbaya said.

On that occasion, Purbaya stated that he will prepare EV incentives, with details of 100,000 car units and 100,000 electric motorcycle units this year.

For electric motorcycles, Purbaya has budgeted Rp5 million per motorcycle. Meanwhile, for cars, Purbaya will provide incentives in the form of Government-Borne Value Added Tax (PPN DTP) of 40–100 percent for the purchase of electric vehicles (EVs).

The PPN DTP incentive is specifically for EVs, excluding hybrid vehicles.

Regarding the amount of the incentive, it will be determined based on the battery used, divided into nickel and non-nickel batteries.

“For cars, it varies. Some have 100 percent of the VAT borne, some 40 percent. It depends on the battery,” Purbaya said.

He had previously explained that nickel battery-based electric vehicles will receive larger subsidies. The consideration is to encourage the use of nickel as one of Indonesia’s flagship commodities.