Indonesian Political, Business & Finance News

Moeldoko Suddenly Slams Inconsistent Electric Vehicle Incentives, Explains His View

| Source: CNBC Translated from Indonesian | Regulation
Moeldoko Suddenly Slams Inconsistent Electric Vehicle Incentives, Explains His View
Image: CNBC

Jakarta, CNBC Indonesia - The policy on electric vehicle incentives, deemed inconsistent, has left consumers and the entire ecosystem waiting. Moeldoko, chairman of the Indonesian Electric Vehicle Industry Association PERIKLINDO, criticised that policy changes have made it difficult for the industry and consumers to decide.

He argued that the government should have a clear long-term policy direction so that the electric vehicle ecosystem can grow more stably. The uncertainty surrounding subsidies is dampening domestic EV sales.

‘Therefore the state should not hesitate to provide subsidies. Do not hesitate to provide incentives to all users,’ Moeldoko said during the Launching of the PERIKLINDO Electric Vehicles Show (PEVS) 2026, Thursday (21/5/2026).

He noted subsidies for electric vehicles have changed many times. In some periods subsidies were provided, but were then halted without continuity. This condition makes industry players struggle to set business strategies. Dealers and consumers alike are waiting before making transactions.

‘But unfortunately, government policy goes up and down, not consistent. If you remember, subsidies are being applied again now. A year ago there were none,’ he said.

The uncertainty has begun to affect sales. Many EV dealers are said to be withholding stock because market demand is delayed.

’ Buyers are waiting to see when government subsidies will come down. They have been announced but when they will come into effect remains to be seen,’ he added.

The sudden policy changes complicate the industry in preparing production and distribution. After all, the automotive sector needs long-term planning so the supply chain can keep moving.

Nevertheless, Moeldoko continues to appreciate the government’s move to reintroduce subsidies for electric vehicles. He hopes the policy can be sustained to bring more market stability.

‘Alhamdulillah the government has now reintroduced subsidies for motorcycle users, converters, and car users. We extend our appreciation to the government,’ he said.

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