Not Just to Boost Consumption, Electric Vehicle Incentives Prepared to Reduce Fuel Burden
JAKARTA - The government is preparing electric vehicle incentive policies not merely to encourage consumption, but also as a strategy to reduce dependence on petroleum fuels (BBM) and maintain fiscal resilience.
Finance Minister Purbaya Yudhi Sadewa stated that the plan is being refined with the Ministry of Industry and will be announced shortly.
“I am interested in the electric vehicle subsidy proposal. Besides encouraging consumption, we can also reduce BBM consumption. So in the future, if accelerated, this can strengthen our economic budget resilience,” Purbaya said during the APBN KiTa press conference in Jakarta on Tuesday (5/5/2026).
“The first 100,000, if exhausted, we will provide more. The scheme will be explained by the Minister of Industry and the Coordinating Minister for the Economy,” he added.
In addition to electric cars, a similar scheme will be applied to two-wheeled vehicles. The government is preparing a subsidy of Rp 5 million per unit for the first 100,000 electric motorcycles.
“Electric motorcycles are the same, the first 100,000 we will provide. The subsidy is Rp 5 million. If exhausted, we will add more,” Purbaya said.
He assessed that accelerating the adoption of electric vehicles in the medium term could reduce pressure on the state budget, particularly from the energy subsidies that have been quite substantial.
This policy is targeted to start running at the beginning of the second semester of 2026 and is expected to provide additional impetus for economic growth, especially in the second half of this year.
One of them is through cheaper financing support to encourage engine renewal in labour-intensive sectors such as textiles and footwear.
Purbaya emphasised that the government wants to ensure the private sector’s role becomes stronger in supporting national economic growth.
“The economy is not driven only by the government. We want the private sector to thrive as well,” Purbaya concluded.