Industry Ministry says industry and consumers await EV incentive certainty

The Industry Ministry has assessed that both industry players and consumers are still awaiting certainty regarding electric vehicle (EV) incentives. “Regarding this, we ask that industry and automotive consumers be given certainty immediately,” said ministry official Febri in Jakarta on Tuesday. He noted that the current situation could delay public purchasing decisions, potentially putting pressure on the automotive industry’s performance. “So we request that policymakers in other ministries and agencies immediately provide certainty regarding these incentives,” Febri stated. In response to efforts to boost sales in the second half of the year, Febri emphasised that the ministry continues to collaborate with various industry associations to strengthen the marketing of nationally manufactured products. It was previously reported that Finance Minister Purbaya Yudhi Sadewa said the government is preparing incentives for electric vehicles, targeting 100,000 electric cars and 100,000 electric motorcycles this year. For electric motorcycles, the government estimates an incentive value of Rp5 million per unit. However, the final amount and scheme of the assistance will be announced after discussions with relevant ministries and agencies are completed. He also argued that EV incentives are intended to reduce fuel imports amid expectations that global oil prices will remain high in the coming months. The EV incentive programme is one of the government’s efforts to accelerate the adoption of environmentally friendly vehicles. Previously, the Industry Ministry strengthened the role of small and medium industries to enter the battery-based electric vehicle supply chain, in order to support the development of the ecosystem in the country. The ministry stressed that the development of the national EV industry should not rely solely on large-scale industrial investment, but must also open wider participation opportunities for small and medium industry players as an important part of the industrial supply chain. Based on data from the Association of Indonesian Automotive Industries (Gaikindo), sales of battery electric cars in the first quarter of 2026 reached 33,150 units, an increase of 95.9 percent compared to the same period the previous year. Meanwhile, the electric bus population until April 2026 reached 798 units, and the electric motorcycle population in February 2026 was recorded at 236,451 units, or about 65 percent of the total national electric vehicle population.