Latest Update from Airlangga on Electric Vehicle Incentives

Jakarta, CNBC Indonesia – Coordinating Minister for Economic Affairs Airlangga Hartarto has spoken out about the continuation of electric vehicle incentives. Airlangga said the incentives will be linked to national electric cars or national electric motorcycles.

“We will see later whether it (the incentive) is linked to the national car or the national motorcycle,” Airlangga told reporters at his office on Monday (27/7/2026).

When asked whether anything other than national electric cars and national electric motorcycles could receive incentives, he replied that only national electric cars and motorcycles would qualify.

“National electric cars and motorcycles,” he explained.

However, he did not clarify whether the incentives would be disbursed in August or postponed again. So far, the government is set to provide electric vehicle incentives in August 2026.

Previously, the government had promised a policy of Rp5 million subsidies for electric motorcycles and VAT discounts on electric cars.

Finance Minister Purbaya Yudhi Sadewa previously stated that the government was preparing subsidies for electric vehicles. According to him, there are 200,000 electric vehicles – 100,000 motorcycles and 100,000 cars respectively – that would receive subsidies or VAT discounts.

He revealed that the subsidy for electric motorcycles would be Rp5 million. Meanwhile, the amount of the subsidy for electric cars has not been disclosed by Purbaya.

“Roughly, how much will we give for electric cars? The first 100,000 subsidies. If they run out, we will provide more. It is the same for electric motorcycles. We will give the first 100,000. How much? Rp5 million,” said Purbaya on Wednesday (7/5/2026).

Purbaya explained that the disbursement scheme was still in the finalisation stage. The policy scheme would later be announced in further detail by the Ministry of Industry and the Coordinating Ministry for Economic Affairs.

“Later, the industry minister will explain what the scheme will look like, and the economy minister will also explain it,” said Purbaya.

However, he confirmed that the quota would be given to 100,000 electric cars and 100,000 electric motorcycles. If the quota runs out, Purbaya will add another quota, given that domestic EV production capacity is 300,000 units for cars and millions for motorcycles.

“What has been discussed, and it is still rough, is 100,000 cars and 100,000 motorcycles. If that is not enough, we will add another 100,000 and another 100,000,” said Purbaya.