Industry Minister says EV incentives will not differ greatly from previous ones
Badung, Bali (ANTARA) - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita stated that the model or scheme for electric vehicle (EV) incentives, for both motorcycles and cars, currently being prepared by the government, will not differ greatly from those previously implemented.
“The model will roughly be the same. We are currently preparing it,” he said when met in Badung, Bali, on Friday.
As Finance Minister (Menkeu) Purbaya Yudhi has indicated that incentives for vehicle electrification should target implementation in June 2026, the Ministry of Industry is now preparing a Ministerial Regulation on Industry (Permenperin).
“The model will roughly be almost the same. We are preparing it now,” said Minister Agus.
Previously, Finance Minister Purbaya Yudhi Sadewa targeted EV incentives for both electric motorcycles and electric cars to begin in June 2026, thereby reducing petroleum fuel (BBM) consumption.
“We will calculate and prepare the budget for it. Clearly, I want it to be implemented starting from early June,” said Purbaya during a press conference of the Financial System Stability Committee (KSSK) in Jakarta on Thursday (7/5).
Purbaya emphasised that the objective of the electric vehicle incentive policy is to change societal consumption patterns, from previously using BBM to using electricity.
Meanwhile, the Institute for Development of Economics and Finance (Indef) believes that the vehicle electrification incentive policy is a long-term fiscal investment capable of becoming a driver of the national economy.
Indef assesses that the policy not only accelerates the energy transition but also enhances economic growth and strengthens national fiscal resilience.
Indef noted that previous government incentives successfully attracted global manufacturers to invest capital and build production bases domestically.
Indef recorded that foreign investment in Indonesia’s electric vehicle sector reached US$2.73 billion over the last three years.