Purbaya: President to Announce EV Incentives Soon

Jakarta (ANTARA) — Finance Minister Purbaya Yudhi Sadewa has stated that President Prabowo Subianto will soon announce the final incentives for electric vehicles (EVs).

“I think within 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 the incentives in the form of up to 100 per cent exemption from the Luxury Goods Sales Tax (PPnBM) as well as a 40 per cent government-borne Value Added Tax incentive (PPN DTP) for vehicles meeting certain criteria.

However, he signalled that the incentives would only be granted to pure battery electric vehicles (BEVs). Hybrid and plug-in hybrid vehicles (PHEVs) would not be included as recipients.

He added, though, that the final details of the incentives would be announced directly by the President.

“I have not heard of that plan. What I have heard is EVs only. Battery nickel-based and battery lithium-based are also slightly different,” he said.

In the 2027 Macroeconomic Framework and Principles of Fiscal Policy (KEM-PPKF), the government included the development of national cars and motorcycles as one of the National Priority Work Programmes (PKPN) under the downstreaming and industrialisation agenda.

Industry Minister Agus Gumiwang Kartasasmita previously said the government would prioritise electric vehicle incentives for national-brand cars as part of efforts to strengthen the domestic automotive industry.

However, when pressed further, Agus Gumiwang did not clarify whether the incentives would also be given to electric vehicle producers already operating in Indonesia.

The government has also yet to detail several aspects of the policy, including the definition of “national-brand car” — whether it refers to brands owned by Indonesian companies or also covers vehicles with high local content levels (TKDN) manufactured in Indonesia.

The government has likewise not confirmed whether the incentives will be given only to national-brand cars or will still cover foreign brands producing in Indonesia, nor when the incentive scheme will be announced.