Tug-of-War Over 2026 EV Incentives: Manufacturers Seek Government Certainty

The provision of certainties regarding incentives for electric vehicles in 2026 is considered vital for increasing the sales of electric motorcycles and cars amidst the volatility expected in 2026, according to Kevin Phang, Chief of Product at Smoot Motor Indonesia & Swap Energi Indonesia.

Kevin Phang stated that business players are hoping for certainty regarding electric vehicle (EV) incentives, particularly concerning technical requirements, duration, and the amount of subsidies provided.

In the midst of this uncertainty, manufacturers are focusing more on increasing sales in the retail sector by expanding distribution while also targeting the B2B segment, specifically for online motorcycle taxi drivers. It is hoped that the availability of electric vehicle incentives can boost the sales of electric motorcycles and cars amidst pressures on purchasing power, helping to achieve the sales target of 100,000 electric motorcycle units.