Industry Minister Reveals Powerful Impact of Electric Vehicle Incentives

The government is opening opportunities for new incentives for electric vehicles to strengthen the industry while reducing the national energy burden. Industry Minister Agus Gumiwang Kartasasmita considers this policy increasingly relevant in the current situation. The discussion on these incentives was one of the topics in the coordination between the Ministry of Industry and the Ministry of Finance. The government is examining the most effective scheme to encourage the adoption of electric vehicles. Agus emphasised that the objective of the policy now not only focuses on environmental aspects. There is an economic dimension that is deemed more urgent to strengthen. “If the government indeed provides incentives for electric motorbikes or cars, this is increasingly relevant,” Agus said at the Ministry of Finance office on Tuesday (5/5/2026). The electric vehicle policy now has a strategic role in reducing dependence on fuel oil (BBM). This directly impacts the energy subsidy burden. “Now there is something more important than that, which is to reduce BBM usage more, meaning it can reduce subsidies,” he said. In addition, incentives are also seen as a tool to strengthen the national industrial structure. Agus believes this policy can create multiplier effects on the workforce sector. According to him, strengthening the electric vehicle industry will contribute to job creation and maintain the sustainability of the domestic industry. “And the third, which is no less important, the incentive or stimulus must indeed be in the framework of strengthening our industry so that our workforce can also be protected,” he explained. Changes in market preferences are starting to appear along with increasing awareness of energy efficiency. However, Agus acknowledged that the details of the incentive scheme are still in the discussion stage. Coordination with the Ministry of Finance is key in determining the direction of the policy. He also mentioned that various types of incentives are being studied, including the possibility of strengthening previous programmes. “We discussed various kinds of incentives earlier, we also talked about incentives as a stimulus,” he revealed. Agus affirmed that all policies designed are still directed towards strengthening the national economy as a whole. “I think all directions are for strengthening the national economy,” he said.