Not Just Electric Motorcycles: Industry Minister Signals Subsidies for All EVs!

Jakarta, CNBC Indonesia - Industry Minister Agus Gumiwang Kartasasmita has revealed that the government is now considering subsidies for the purchase of all models of electric vehicles (EVs). This includes not only electric motorcycles but also electric cars.

“All of them must be, all will eventually be based on electric vehicles,” Agus said at the Office of the Coordinating Ministry for Economic Affairs in Jakarta on Tuesday (28/4/2026).

According to him, this policy will be pursued in consideration of President Prabowo Subianto’s directives on national energy resilience.

The ongoing conflict in the Middle East, which disrupts energy commodity trade in the Strait of Hormuz, particularly crude oil, serves as a benchmark for Agus that Indonesia must urgently transition to vehicles based on new and renewable energy sources, such as EVs.

“In the past, when we designed the EV programme, we used an emissions reduction approach. That is also important. But now, with our experience of the Hormuz situation, it must also be linked and perhaps more importantly to energy resilience,” he stated.

“So energy resilience means reducing our dependence on imported fuel,” Agus emphasised.

According to Agus Gumiwang, the government is currently focusing on formulating policies to reinstate subsidies specifically for electric motorcycle purchases, planned at Rp 5 million per unit.

However, he stressed that the subsidy amount of Rp 5 million per unit, lower than the previous Rp 7 million, is merely a proposal from the Ministry of Finance and not yet an official decision.

“I think I’m still waiting from the technical team on the subsidy value. So that we can determine the budget allocation for the subsidies and then translate it into how many units of motorcycles,” he explained.

If the subsidy value decided between the Ministry of Finance and the Ministry of Industry remains at Rp 5 million, he believes it is already a sufficient figure to signal that the government is focused on driving the energy transition.

“If it’s Rp 5 million, I think it will lead to a good position where the government is sending a message that the lessons learned from geopolitical events, including in Hormuz, mean we must first strengthen our energy resilience, and thus reducing the need for imported fuel becomes important,” he said.

Previously, Finance Minister Purbaya Yudhi Sadewa had confirmed that incentives for electric motorcycles would continue this year. The incentive amount is set at approximately Rp 5 million per electric motorcycle.

“This year. Not all at once, gradually. The subsidy might be Rp 5 million per motorcycle, Rp 5 million or more,” Purbaya stated during a media briefing at his office on Friday (24/4/2026).

Nevertheless, Purbaya explained that the number of subsidy recipients for electric motorcycles will still be discussed further with relevant ministries.

“The number of motorcycles to be subsidised is still under consideration, and we want to show what it looks like,” he said.

“But clearly, I will first discuss with the Industry Minister, the Coordinating Minister for the Economy, and we will report back to the President according to the instructions at that time,” he added.