Rp 5 Million Electric Motorcycle Subsidy Starts in June, This is the Government's Target

REPUBLIKA.CO.ID, JAKARTA – The Chair of the Financial System Stability Committee (KSSK) and Finance Minister, Purbaya Yudhi Sadewa, has stated that a subsidy of Rp 5 million has been prepared for each electric motorcycle purchase. The programme, scheduled to commence in early June 2026, is targeted to cover 100,000 vehicle units.

The incentive, Purbaya continued, is intended to accelerate the public’s transition from fuel-powered vehicles to electric ones.

“For electric motorcycles, the subsidy is around Rp 5 million per unit. For electric cars, it is adjusted according to the battery capacity,” Purbaya said during the KSSK meeting media briefing on Thursday (7/5/2026).

According to him, the government is also preparing incentives for electric cars in the form of government-borne Value Added Tax (PPN DTP). The amount varies from 40 per cent to 100 per cent, depending on the vehicle’s battery capacity.

Purbaya stated that the subsidy scheme has been discussed with Industry Minister Agus Gumiwang Kartasasmita and reported to Coordinating Minister for Economic Affairs Airlangga Hartarto.

He assured that the programme’s budget has been accounted for by the government. According to Purbaya, this policy is not only to encourage the use of electric vehicles but also to safeguard national economic resilience.

“The important thing is the transition from fuel to electricity so that imports of fuel oil or crude oil can be reduced. This helps our economic resilience,” he said.

The government hopes that these incentives will make electric vehicles more affordable for the public while reducing Indonesia’s dependence on imported fuel oil.