MG Awaits Government's Technical Clarity on Electric Vehicle Incentives

MG Motor Indonesia has positively received the government’s plan to prepare incentives for 100,000 electric vehicle units this year. However, MG is still awaiting clarity on the technical implementation. The British manufacturer, which has been acquired by China, assesses this policy as a strong signal of government support for the development of the domestic electric vehicle industry, especially amid a dynamic economic situation. “The details are only 100,000, 200,000. But how the implementation will be, and which points will be subsidised, that’s what we need, so we can study it more deeply. However, with this news (incentives), we are happy, as industry players in the automotive sector, we are certainly very pleased,” said MG Motor Indonesia Product Manager Eko Fachruroji to the media during a test drive in Bandung on Wednesday (6/5/2026). Currently, according to Fachru, industry players, including MG, are still waiting for further clarity on the mechanism and criteria for providing incentives that are being reviewed by the government. “However, we are indeed waiting for the operational aspects. That is, it was also mentioned that there are some criteria such as batteries. Perhaps full nickel will get full incentives, or LFP might get them too, but with different portions,” he said. Nevertheless, the manufacturer assesses that a full incentive scheme like the one implemented previously remains the more effective option to encourage wider adoption of electric vehicles. “According to us, the appropriate (incentive scheme) is last year’s. That is, last year it was 100 percent incentivised,” Fachru stated.