Nickel Battery Electric Vehicles to Receive Larger Incentives, BYD's Response

The Indonesian government is currently refining incentives for the purchase of battery electric vehicles (BEVs) in the domestic market to stimulate buying interest in the second half of 2026. Finance Minister Purbaya Yudhi Sadewa revealed that one scheme under consideration is providing larger incentives for electric cars using nickel-based batteries. This policy aims to encourage the utilisation of domestic mineral resources while bolstering the national battery industry. In response to the plan, Luther Pandjaitan, Head of Marketing, PR & Government at BYD Indonesia, stated that the company welcomes any government policies aimed at accelerating energy transition and vehicle electrification in the country. However, Luther admitted he could not provide further comments due to the absence of official information on the incentive scheme. “I cannot give a response yet because there is no official information on this matter. But I believe the government’s intention is to support the acceleration of energy transition and reduce reliance on fuel subsidies,” Luther said in Jakarta on Tuesday (12/5/2026). Luther assessed that both nickel-based batteries and lithium ferro phosphate (LFP) batteries play equally important roles in supporting the national electrification agenda. “Whatever the technology, whether nickel or LFP, both support the government’s good intentions in promoting energy transition,” he said. Regarding the possibility of BYD switching to nickel manganese cobalt (NMC) batteries if larger incentives are granted to nickel-based vehicles, Luther stated that the company prioritises long-term strategies. He noted that government policies are part of evolving market dynamics, while BYD’s main focus is to deliver products that support comprehensive electrification acceleration. “We are grateful for the consistency and stability of existing policies, as this is reflected in the growth of sales and market share of electric vehicles in Indonesia,” Luther continued. He also viewed the government’s planned additional incentives as a signal that current policies have been effective in accelerating electric vehicle penetration in the domestic market. “The key is to maintain the momentum and continue building consumer confidence. Now, the public is increasingly confident in using electric vehicles,” he added.