Government Expands Electric Vehicle Incentives as BRI Finance Pledges Financing Support
Jakarta, 11 June 2025 – The government, through the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), has expanded incentives for electric vehicle manufacturers to accelerate the development of the electric car ecosystem in Indonesia. The policy is set out in Minister of Investment and Downstreaming/Head of BKPM Regulation Number 1 of 2024, which provides two main types of incentives: firstly, import duty exemption (0%) and government-borne luxury goods sales tax (PPnBM DTP) for imports of battery-based electric cars; and secondly, PPnBM DTP incentives for the delivery of domestically produced battery-based electric cars. The measure is expected to attract investment from global automotive manufacturers and strengthen the national electric vehicle industry.
In response to the policy, PT BRI Multifinance Indonesia (BRI Finance), a subsidiary of BRI Group, expressed its full support and welcomed the incentives. BRI Finance President Director Wahyudi Darmawan said the policy is expected to further increase market interest in electric cars, which in turn would boost electric vehicle financing. The policy is in line with BRI Finance's commitment to promoting sustainable financing and supporting the transition to environmentally friendly vehicles in Indonesia.
"As a multipurpose financing company, BRI Finance is optimistic that electric car financing, particularly for Battery Electric Vehicles (BEV), will grow significantly in 2025. Government policy certainly has a major influence on the growth of electric cars in Indonesia, from production and sales through to financing," said Wahyudi.
The trend of electric car usage in Indonesia is increasing, in line with growing public awareness of environmentally friendly vehicles. Among the advantages of electric cars over conventional vehicles are zero emissions that help reduce air pollution, quieter engines, and lower operational costs due to the elimination of fossil fuels and simpler engine maintenance.
Wahyudi added that BRI Finance will continue to develop strategies to increase electric vehicle financing, including offering attractive financing schemes with competitive interest rates. As part of BRI Group, BRI Finance will work in synergy with PT Bank Rakyat Indonesia (Persero) Tbk to strengthen these efforts.
Currently, BRI Finance offers a Motor Vehicle Credit (KKB) programme with competitive interest rates, including a promotional rate of 0% per annum for new cars, 0.66% per month for used cars, and 0.7% per month for motorcycles, effective from 1 May 2025.
"BRI Finance will continue to maximise the captive market, which has great potential to support quality financing growth. We will also continue to innovate in our strategy to increase electric vehicle financing, which is growing rapidly," Wahyudi concluded.
In response to the policy, PT BRI Multifinance Indonesia (BRI Finance), a subsidiary of BRI Group, expressed its full support and welcomed the incentives. BRI Finance President Director Wahyudi Darmawan said the policy is expected to further increase market interest in electric cars, which in turn would boost electric vehicle financing. The policy is in line with BRI Finance's commitment to promoting sustainable financing and supporting the transition to environmentally friendly vehicles in Indonesia.
"As a multipurpose financing company, BRI Finance is optimistic that electric car financing, particularly for Battery Electric Vehicles (BEV), will grow significantly in 2025. Government policy certainly has a major influence on the growth of electric cars in Indonesia, from production and sales through to financing," said Wahyudi.
The trend of electric car usage in Indonesia is increasing, in line with growing public awareness of environmentally friendly vehicles. Among the advantages of electric cars over conventional vehicles are zero emissions that help reduce air pollution, quieter engines, and lower operational costs due to the elimination of fossil fuels and simpler engine maintenance.
Wahyudi added that BRI Finance will continue to develop strategies to increase electric vehicle financing, including offering attractive financing schemes with competitive interest rates. As part of BRI Group, BRI Finance will work in synergy with PT Bank Rakyat Indonesia (Persero) Tbk to strengthen these efforts.
Currently, BRI Finance offers a Motor Vehicle Credit (KKB) programme with competitive interest rates, including a promotional rate of 0% per annum for new cars, 0.66% per month for used cars, and 0.7% per month for motorcycles, effective from 1 May 2025.
"BRI Finance will continue to maximise the captive market, which has great potential to support quality financing growth. We will also continue to innovate in our strategy to increase electric vehicle financing, which is growing rapidly," Wahyudi concluded.