Purbaya: President to Announce EV Incentives Soon

Finance Minister Purbaya Yudhi Sadewa has stated that President Prabowo Subianto will soon announce the final incentives for electric vehicles. “I think in two or three weeks from now, the President will launch another stimulus for EVs, including for around 500,000 electric motorcycles and electric cars,” Purbaya said at the Gaikindo Indonesia International Auto Show (GIIAS) 2026 in Tangerang, Banten, on Tuesday. According to him, the government will provide incentives in the form of a 100 per cent exemption on the Luxury Goods Sales Tax (PPnBM) and a 40 per cent Government-borne Value Added Tax (PPN DTP) incentive for vehicles meeting certain criteria. However, he signalled that the incentives would only be granted for pure battery electric vehicles (BEVs), while hybrid and plug-in hybrid vehicles (PHEVs) would not be eligible. He added that the final details of the incentive scheme would be delivered directly by the President. “I have not heard of that plan. What I have heard is that the plan is for EVs only. Battery nickel-based and battery lithium-based are also slightly different,” he said. In the 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF), the government has included the development of national cars and motorcycles as one of the National Priority Work Programmes under the downstreaming and industrialisation agenda. Industry Minister Agus Gumiwang Kartasasmita previously stated that the government would prioritise EV incentives for national car brands as part of efforts to strengthen the domestic automotive industry. However, when asked further, Agus Gumiwang did not clarify whether the incentives would also be extended to EV manufacturers already operating in Indonesia. The government has also not detailed several aspects of the policy, including the definition of a “national car brand”, whether it refers to brands owned by Indonesian companies or also includes vehicles with high levels of locally sourced components (TKDN) produced in Indonesia. It remains unconfirmed whether the incentives will be exclusively for national car brands or will also cover foreign brands manufacturing in Indonesia, nor when the incentive scheme will be officially announced.