Government evaluates EV incentives for national car project

Jakarta (ANTARA) - The government is currently evaluating the highly anticipated electric vehicle (EV) incentives as it shifts focus toward developing a national car program, Coordinating Minister for Economic Affairs Airlangga Hartarto stated.

He further declined to confirm whether the EV incentives would take effect by August 2026, as previously planned.

"We are still evaluating it, especially since we are currently preparing a national car program," Airlangga told reporters at the Smesco Building in Jakarta, Monday.

He did not elaborate on the specific hurdles delaying the implementation or how the upcoming national car program would integrate with current EV strategies.

The policy review comes amid high domestic demand for eco-friendly vehicles.

According to data from the Association of Indonesian Automotive Industries (Gaikindo), battery electric vehicle (BEV) sales reached 33,150 units in the first quarter of 2026—marking a 95.9-percent surge compared to the same period last year.

Meanwhile, the country's electric motorcycle population stood at 236,451 units in February 2026—making up approximately 65 percent of the total national electric vehicle population.

Earlier in May 2026, Finance Minister Purbaya Yudhi Sadewa revealed that the government was preparing EV incentives targeting 100,000 electric cars and 100,000 electric motorcycles this year.

Purbaya estimated the subsidy value for electric motorcycles at Rp5 million (US$280.90) per unit, while the incentive value for electric cars is still being determined.

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Translator: Shofi Ayudiana, Yashinta Difa

Editor: Azis Kurmala

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