Purbaya: Electric Vehicle Incentives Still Being Calculated, Announcement Soon

The government is still finalising a new incentive package for electric vehicles, which is planned to be announced soon. After previously hinting at stimulus for the purchase of electric cars and motorcycles, Finance Minister Purbaya Yudhi Sadewa now says that technical discussions on the incentives are still ongoing before being announced by President Prabowo Subianto. “It is still being calculated. Still being discussed. But it will be announced soon. Motorcycles and cars as well,” Purbaya said when asked about the EV incentive news at GIIAS 2026 on Tuesday (4/8/2026). Amid the growing electrified vehicle market in Indonesia, questions have arisen as to whether the government will also provide incentives for hybrid cars, plug-in hybrid electric vehicles (PHEV), or range extended electric vehicles (REEV). However, no such signal has been seen yet. “I have not heard of that plan. What I heard is the plan is for EVs only. Nickel-based batteries and lithium-based batteries are also slightly different,” Purbaya stated. The government has also not disclosed the details of the stimulus to be provided. The incentive scheme is still awaiting the official announcement, so it cannot yet be confirmed whether it will follow the same pattern as previous programmes. “I forget the details. It will be announced by the President later,” Purbaya said when asked if the incentive would take the form of Government-borne Value Added Tax (PPN DTP). The plan to provide electric vehicle incentives aligns 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 the purchase of 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 emerging information about plans to impose taxes at the regional level. “I don’t know if the Governor of DKI’s policy is final yet. But the central government’s policy is clear. Electric cars are not subject to tax,” Purbaya said. When asked whether differing regional policies would mean they are not aligned with the central government, Purbaya assured that coordination would be carried out to ensure the regulations remain in harmony.