Leak on Electric Vehicle Incentive Scheme: Larger for Nickel Battery Users
JAKARTA - The government is preparing incentives for electric vehicle (EV) purchases through a government-borne value-added tax (PPN DTP) scheme.
Finance Minister Purbaya Yudhi Sadewa revealed that the amount of the incentive is still in the finalisation stage. However, it is estimated to range from 40 percent to 100 percent.
“PPN DTP includes 100 percent and 40 percent; the scheme will still be discussed. This is mainly for EVs, not hybrids,” said Purbaya during the APBN KiTa press conference broadcast online on Tuesday (5/5/2026).
According to Purbaya, electric vehicles with nickel-based batteries are likely to receive larger incentives.
This policy is aimed at encouraging the utilisation of domestic resources while strengthening the national battery industry supply chain.
“So, nickel-based batteries and non-nickel ones will have different schemes later. That’s calculated by the Minister of Industry. Why is the subsidy for nickel larger? Because we want to use our nickel,” said Purbaya.
This step is also in line with the government’s efforts to accelerate nickel downstreaming as a strategic commodity in developing the electric vehicle ecosystem in Indonesia.
The development of nickel-based batteries also has great potential because it includes more advanced generation technology compared to some other types of batteries currently in widespread use.
“I once read in The Economist with the title that Indonesia’s dream of dominating the world battery market is lost because China doesn’t use nickel, they say. Now we’re turning it around by using our nickel so that the battery technology downstreaming runs,” he continued.
“So we’re moving in that direction, so that our resources can also be used maximally,” Purbaya concluded.
In a separate opportunity, Coordinating Minister for the Economy Airlangga Hartarto stated that the electric vehicle incentives will be reported to Indonesian President Prabowo Subianto in the near future.
“We just discussed this and it will be reported to Mr President. It will be announced after we report it to Mr President,” said Airlangga.