Weekly economy: Petrol prices fall, EV incentives directed at high-value products
Various economic events occurred during the week of 3–8 August, ranging from a decline in petrol prices at the start of August to the policy direction for electric vehicle (EV) incentives aimed at high value-added products.
Petrol prices fell in the first week of August. Fuel prices for petrol at Pertamina, Shell, and bp public filling stations were observed to have declined in the first week of August, although there was an increase in diesel prices at private filling stations.
Sri Mulyani Indrawati has again taken up a position at the World Bank. The World Bank appointed former Indonesian Finance Minister Sri Mulyani Indrawati as the 22nd Independent Co-Chair of the International Development Association (IDA). In this role, Sri Mulyani is tasked with promoting stronger policy and funding support in both donor and borrowing countries.
Car sales rose, and the Finance Minister is confident domestic purchasing power remains intact. Finance Minister Purbaya Yudhi Sadewa said that growth in car sales is one indicator showing that demand and purchasing power in the domestic market remain well maintained. While attending the Gaikindo Indonesia International Auto Show (GIIAS) 2026 in Tangerang, Banten, on Tuesday, the Finance Minister noted that car sales grew 32.9 percent year-on-year (yoy) in June 2026, while motorcycle sales grew 1.1 percent (yoy).
With demand reaching Rp70 trillion, the government absorbed Rp32 trillion in government bonds. The government absorbed Rp32 trillion from an auction of nine series of Government Securities (SUN) that received total demand of Rp70.72 trillion on 4 August 2026. The Directorate General of Financing and Risk Management (DJPPR) at the Ministry of Finance stated in a press release in Jakarta on Wednesday that the Finance Minister set the total nominal amount won from the nine series offered at Rp32 trillion.
Industry Minister: EV incentive recipients should be high value-added products. Industry Minister Agus Gumiwang Kartasasmita stated that recipients of electric vehicle (EV) incentives will be directed towards products that provide high added value and are part of the national car or motorcycle programme. “The focus of incentive recipients for EV-based cars or vehicles, whether four-wheeled or motorcycles, will certainly be products that create high added value in Indonesia, meaning their structural depth is strong, but equally important is that they are part of the national car programme or the national electric motorcycle programme,” the Industry Minister said when met in Jakarta on Thursday.