Purbaya to Report to Prabowo Soon, Electric Vehicle VAT Incentive to Launch in June

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa stated that he only needs to report to President Prabowo Subianto to execute the policy on tax incentives for electric vehicle purchases, in the form of government-borne Value Added Tax (PPN DTP). This includes purchases of motorcycles.

“I must report to the President as well. Because essentially, the President’s statement is that we reduce petrol consumption and move towards electricity,” said Purbaya in the Kebon Sirih area, Jakarta, on Wednesday (6/5/2026).

This tax incentive scheme involves the government preparing a quota of incentives for 100,000 electric cars and 100,000 electric motorcycles. If the quota is exhausted, Purbaya will add to the quota again, considering the domestic EV production capacity of 300,000 units for cars and millions for motorcycles.

“What has been discussed is still raw, 100,000 cars and 100,000 motorcycles. Later, if it’s insufficient (add) another 100,000 and 100,000,” said Purbaya.

The addition of the incentive quota, according to Purbaya, has no maximum limit. Nevertheless, the State Treasurer assured that the budget has been calculated and is sufficient.

“So I want to see the acceleration of the shift from combustion vehicles to EVs in accordance with the President’s instructions. So, the manufacturers work, and there is savings in petrol consumption.”