Purbaya Considers Electric Motorcycle Incentives and Elderly Subsidies

Indonesian Finance Minister Purbaya Yudhi Sadewa has confirmed that the state budget (APBN) remains robust enough to withstand the impact of energy price fluctuations on fuel and LPG subsidies, ensuring that subsidised fuel prices will not rise and purchasing power will not be disrupted, thereby safeguarding the Indonesian economy. Regarding the weakening of the Rupiah exchange rate, which briefly touched its lowest level of Rp 18,200 per US dollar and created negative sentiment for the economy, Purbaya assured that economic fundamentals are still strong, supported by the Prabowo administration’s targeted and leak-free economic strategy. The Ministry of Finance, together with Bank Indonesia, is cooperating to manage sentiment towards the exchange rate and ensure its impact on the Indonesian economy remains limited. Purbaya also confirmed the government’s commitment to overcoming various investment obstacles through the formation of a ‘Bottle Necking’ Task Force. This task force has already successfully resolved several investment hurdles thanks to cooperation between the Ministry of Finance and related ministries and agencies, citing the example of a waste-to-energy plant in Sulawesi. Purbaya is also encouraging ministries and agencies to maximise spending as a pillar of the economy, warning that those slow or failing to meet targets will have their budgets reorganised in the coming year. He also assured oversight of ministerial spending to ensure it impacts the economy and development. Regarding incentives for the second half of 2026, Purbaya is considering providing incentives for electric vehicles. Additionally, a subsidy for the elderly is being planned but is still awaiting the President’s decision.