Government Allocates Incentives for 100,000 Electric Vehicles

REPUBLIKA.CO.ID, JAKARTA – The government is preparing an economic stimulus through subsidies for electric vehicles. This incentive aims to maintain the momentum of national economic growth.

Finance Minister Purbaya Yudhi Sadewa stated that incentives will be provided for 100,000 electric car units in the initial phase. The incentive scheme will be announced further by the relevant ministries.

“If it’s exhausted, we’ll provide more. If it’s exhausted, we’ll provide more,” Purbaya said during the APBN KiTa Media Briefing at the Ministry of Finance Office on Tuesday (5/5/2026).

In addition to electric cars, the government is also preparing subsidies for 100,000 electric motorcycle units worth around Rp5 million per unit. This policy is targeted to start running in early June and is directed to encourage economic growth in the third and fourth quarters of 2026.

According to Purbaya, electric vehicle incentives are not only aimed at increasing consumption but also at reducing dependence on fuel oil (BBM).

“In addition to encouraging consumption, we can also reduce BBM consumption,” he said.

On the other hand, the government will also strengthen the manufacturing sector, particularly the textile and footwear industries, through the provision of low-cost financing for machinery renewal.

This step is expected to revive the role of the private sector, which has long been the mainstay of the national economy.

“The economy is not driven solely by the government. The private sector must thrive. Its contribution is around 90 percent,” Purbaya said.

The government emphasised that it will ensure all economic engines are running, both from the demand and production sides, to maintain growth amid global uncertainties.