Prabowo to Announce Stimulus for 500,000 Electric Motorcycles and Cars, But When?

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has revealed that President Prabowo Subianto will personally announce a new incentive package for electric vehicles within the next two to three weeks. “I think in two or three weeks the President will launch a new stimulus for electric vehicles, including for 500,000 electric motorcycles and also electric cars,” Purbaya said at GIIAS 2026, quoted on Wednesday (5/8/2026). He did not detail the form of the incentives, stating that the scheme is still under discussion. “It is still being calculated, still being discussed, but it will be released soon. 500,000 motorcycles, and cars too. The President will announce it later,” he said. Purbaya did disclose that one scheme being prepared is government-borne value-added tax (PPN DTP). He also signalled that the government would provide different treatment based on the type of battery used in the electric vehicles. The planned electric vehicle incentives align with Purbaya’s previous statement that the government is preparing an economic stimulus package to boost growth in the second half of 2026. One of the stimuli being prepared is an incentive for purchasing electric cars and motorcycles to strengthen people’s purchasing power while supporting the development of the national electric vehicle industry. Meanwhile, the issue of electric vehicle tax policy in Jakarta has also drawn attention. Purbaya stressed that the central government’s policy still provides tax exemptions for electric vehicles, despite reports of a planned tax at the regional level. “I don’t know if the policy from the DKI Governor is final yet. But the central government’s policy is clear. Electric cars are not taxed,” Purbaya said. When asked whether differing regional policies would be out of step with the central government, Purbaya assured that coordination would be carried out to ensure the rules remain aligned. “Yes, we will find a way to align them,” he stated.