JAKARTA, May 5 — Indonesia is preparing a new set of incentives for electric vehicles (EVs), covering up to 100,000 electric cars and 100,000 electric motorcycles this year, with implementation targeted to begin as early as June.
Finance Minister Purbaya Yudhi Sadewa said the initial quota could be expanded if fully taken up, with detailed mechanisms to be announced by the Industry Ministry and the Coordinating Ministry for Economic Affairs.
“The first 100,000 (per category), if they are used up, we will provide more,” he said during a media conference on the national budget today.
Purbaya estimated subsidies of around Rp5 million (RM1,135.25) for electric motorcycles, adding that details of the broader EV incentive scheme, including those for cars, would be announced after coordination with relevant parties.
The programme is aimed at supporting economic activity in the second half of the year.
“This is to drive economic growth in the short term, particularly in the third and fourth quarters. Early June, it should start running,” he said, adding that the policy has been discussed internally and will be formally announced by the relevant ministries.
The EV incentive plan gained traction following discussions with Industry Minister Agus Gumiwang Kartasasmita and aligns with broader efforts to reduce fuel consumption and ease the burden of energy subsidies amid rising global oil prices.
“I am interested in their proposal to provide subsidies for electric vehicles. Besides boosting consumption, we can also reduce fuel consumption.
"Going forward, if this is accelerated, it should strengthen the resilience of our budget and economy,” Purbaya said.
He noted that the government is seeking to ensure all 'engines of the economy' are running, including stimulating demand and supporting the manufacturing sector.
