Latest Update from Airlangga on Electric Vehicle Incentives

Coordinating Minister for Economic Affairs Airlangga Hartarto has spoken about the continuation of electric vehicle incentives. Airlangga stated that the incentives will be linked to national electric cars or national electric motorcycles. “We will see later, it will be linked to national cars or national motorcycles,” Airlangga told reporters at his office on Monday (27/7/2026). When asked whether vehicles other than national electric cars and motorcycles could receive incentives, he replied that it was only for national electric vehicles. “National electric cars and motorcycles,” he clarified. However, he did not explain whether the provision of these incentives would take place in August or be postponed further. The government has previously targeted August 2026 for the incentive rollout. Earlier, the government had promised a motorcycle subsidy of Rp5 million and a VAT discount for electric cars. Finance Minister Purbaya Yudhi Sadewa previously stated that the government is preparing subsidies for electric vehicles. He noted that 200,000 electric vehicles, comprising 100,000 motorcycles and 100,000 cars, would receive subsidies or VAT discounts. He revealed that the subsidy for electric motorcycles would be Rp5 million, while the amount for electric cars has not yet been disclosed. Purbaya explained that the distribution scheme is still being finalised and will be announced later by the Ministry of Industry and the Coordinating Ministry for Economic Affairs. He confirmed the initial quota of 100,000 electric cars and 100,000 electric motorcycles, adding that the quota could be increased given the domestic EV production capacity of 300,000 cars and millions of motorcycles.