Industry Minister: EV Incentive Recipients for High Value-Added Products
Industry Minister (Menperin) Agus Gumiwang Kartasasmita has stated that recipients of electric vehicle (EV) incentives will be directed towards products that provide high value-added, as well as those that are part of the national car or motorcycle programme.
“The focus of incentive recipients for EV-based cars or vehicles, whether four-wheeled or motorcycles, will certainly be products that indeed create high value-added in Indonesia, meaning their structural deepening is strong, but also, no less importantly, those that are part of the national car programme or the national electric motorcycle programme,” said the Minister when met in Jakarta on Thursday.
He said the Ministry of Industry is ready to provide support should the Ministry of Finance issue an electric vehicle incentive policy.
According to him, as the technical ministry, his side is preparing aspects in line with the policy that will be established.
“And if later, when the time comes, the government issues incentives, as conveyed by (Finance Minister) Mr Purbaya, we will certainly prepare the technical aspects,” he said.
Regarding the possibility of incentives that take into account the level of domestic components (TKDN), Minister Agus said his side is still waiting for the concept being prepared by the Ministry of Finance.
“But whatever the corridor or concept prepared by the Ministry of Finance, we will certainly support it, and as the technical ministry we will certainly prepare it based on what is stipulated in the PMK (Minister of Finance Regulation),” he said.
Previously, Finance Minister Purbaya Yudhi Sadewa stated that President Prabowo Subianto will soon announce the final incentives for electric vehicles (EVs).
“I think within two or three weeks from now, the President will launch another stimulus for EVs, including for around 500,000 electric motorcycles and electric cars,” said Purbaya in Tangerang, Banten, on Tuesday (4/8/2026).
According to him, the government will distribute incentives in the form of a Sales Tax on Luxury Goods (PPnBM) exemption of up to 100 percent, as well as a Government-Borne Value Added Tax (PPN DTP) incentive of 40 percent for vehicles meeting certain criteria.
However, he signalled that the incentives will only be given to pure battery electric vehicles (BEVs). Meanwhile, hybrid cars and plug-in hybrids (PHEVs) will not be included as incentive recipients.
He added, however, that the final details of the incentive provision will be announced directly by the President.
“I have not heard of that plan. What I have heard is that the plan is for EVs only. Nickel-based batteries and lithium-based batteries are also slightly different,” he said.
In the 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF), the government has included the development of national cars and motorcycles as one of the National Priority Work Programmes (PKPN) under the downstreaming and industrialisation agenda.