To Curb Fuel Consumption, Purbaya Pushes for Electric Vehicle Incentives to Be Implemented in June 2026

Finance Minister Purbaya Yudhi Sadewa is targeting incentives for electric vehicles (EVs), both electric motorcycles and electric cars, to be implemented starting in June 2026. It is hoped that this will help reduce fuel oil (BBM) consumption. “We will calculate and prepare the budget for it. Clearly, I want it to be implemented starting from early June,” Purbaya said during a press conference on the results of the Periodic Meeting of the Financial System Stability Coordination Forum (KSSK) Year II 2026 at the Bank Indonesia office complex in Jakarta on Thursday, 7 May 2026. He emphasised that the purpose of the electric vehicle incentive policy is to change public consumption patterns, from previously using BBM to using electricity. Thus, it is hoped that Indonesia’s imports of BBM and crude oil can decrease in the future. “This helps our economic resilience, so do not view it as a subsidy. The main goal is that, so we are more resilient economically from the energy side,” Purbaya stated. He also said that his side will prepare EV incentives, with details for 100,000 units of electric cars and 100,000 electric motorcycles in 2026. For electric motorcycles, Purbaya has budgeted Rp 5 million per unit. Meanwhile, for cars, Purbaya will provide incentives in the form of Government-Borne Value Added Tax (PPN DTP) of 40–100 percent for the purchase of electric vehicles (EVs). The PPN DTP incentive is specifically for EVs, not including hybrid vehicles. Regarding the amount of the incentive, it will be determined based on the battery used, divided into nickel and non-nickel batteries. “For cars, it varies. Some have 100 percent of the PPN borne, some 40 percent. It depends on the battery,” he said. It is known that previously Purbaya had also explained that nickel battery-based electric vehicles will receive larger subsidies. This consideration aims to encourage the use of nickel as one of Indonesia’s flagship commodities.