The Indonesian government is preparing a new package of incentives for electric vehicles (EVs), with the details of the measures still being finalized. The plans follow several months of discussions on EV incentives, domestic automotive production and the development of a national automotive industry.
Finance Minister Purbaya Yudhi Sadewa said on August 4 that the government would launch measures to support electric vehicle purchases in the coming weeks. Reuters reported that Purbaya made the statement at the Gaikindo Indonesia International Auto Show (GIIAS) in Tangerang, Banten. He said the government would provide value-added tax exemptions of up to 100 percent for certain electric vehicle purchases. Purbaya had previously said that the government would provide a IDR 5 million subsidy for each electric motorcycle, although he did not repeat that figure in his August 4 statement.
According to Reuters, Purbaya said the planned measures would cover 500,000 electric motorcycles. He said President Prabowo Subianto was expected to announce the package within two to three weeks. The government has not yet published the complete structure or eligibility requirements for the package.
The government had previously announced plans for EV incentives covering 100,000 electric cars and 100,000 electric motorcycles in 2026. In May, Purbaya said the government would initially provide incentives for 100,000 electric cars and 100,000 electric motorcycles, with additional incentives after the initial quota was reached. “We will provide incentives, initially targeting 100,000 electric cars, and we will disburse more once the quota is met,” Purbaya said, as quoted by ANTARA.
The government subsequently postponed the implementation of the planned incentives while continuing to review the program. In June, Coordinating Minister for Economic Affairs Airlangga Hartarto said the government was evaluating the incentives in connection with preparations for a national car program. ANTARA quoted Airlangga as saying, “We are still evaluating it, especially since we are currently preparing a national car program.”
In July, Industry Minister Agus Gumiwang Kartasasmita said the government would prioritize EV incentives for national automotive brands. “We will prioritize national brands,” Agus said, as quoted by ANTARA. The government had not yet defined the criteria for a national brand, including whether the category would include foreign manufacturers producing vehicles in Indonesia with high levels of domestic content.
The national automotive program is included in the government's 2027 Macroeconomic Framework and Fiscal Policy Principles. ANTARA reported that the framework incorporates national car and motorcycle development into the government's industrialization and downstreaming agenda.
Indonesia's EV market has also continued to expand. ANTARA reported that battery-electric vehicle sales reached 33,150 units in the first quarter of 2026, an increase of 95.9 percent compared with the same period in 2025, citing data from the Association of Indonesian Automotive Industries (Gaikindo).
The government has also continued to develop policies covering domestic EV production and the wider electric vehicle ecosystem. In September 2025, the government announced that incentives for completely built-up (CBU) battery-electric vehicles imported into Indonesia would end in 2026. Under the previous scheme, qualifying manufacturers were required to produce an equivalent number of vehicles domestically to the number imported.
The Ministry of Industry has also reported the development of an EV battery supply chain in Indonesia, including refining, battery-cell production and recycling. The ministry said in April 2026 that the national EV ecosystem was becoming increasingly integrated from upstream to downstream industries.
The government has not yet announced the complete details of the new EV incentive package. Statements from government officials indicate that the measures are being developed alongside policies covering national automotive brands, domestic production and the automotive supply chain.
