EV incentives to be linked with national electric vehicle programme
IDN Financials, 29 Jul '26
The Indonesian government plans to link electric vehicle (EV) incentives to its national electric car and two-wheeler development programme as part of a strategy to strengthen the domestic electric automotive industry.
Co-ordinating Minister for Economic Affairs Airlangga Hartarto said the incentive scheme currently being prepared would be aligned with the development of Indonesia's national EV industry.
"We will look at linking it to the national car or national two-wheeler programme," Airlangga said, as quoted by media sources.
According to Airlangga, the government is still reviewing the incentive scheme to boost EV sales while strengthening the domestic EV industry ecosystem. However, it has yet to determine the form of the incentives or when the policy will be implemented.
Earlier, Finance Minister Purbaya Yudhi Sadewa said the government was preparing an EV incentive programme throughout 2026. For two-wheelers, the government is considering an incentive of IDR 5 million (US$ 275) per unit. Meanwhile, the amount of the incentive for electric cars remains under discussion and has yet to be announced.
The planned incentives are in line with the government's efforts to accelerate EV adoption and develop a national electric vehicle ecosystem.
Under various planning documents and the country's EV development roadmap, the government aims to expand electric vehicle adoption by 2030. To support that target, it is continuing to expand charging infrastructure through public EV charging stations (SPKLU) and public battery swapping stations (SPBKLU) across the country.
Meanwhile, demand for electric vehicles in Indonesia continues to grow. According to data from the Association of Indonesian Automotive Industries (Gaikindo), battery electric vehicle (BEV) sales increased by 95.9% in the first quarter of 2026 compared with the same period a year earlier. Meanwhile, electric two-wheelers accounted for around 65% of Indonesia's total electric vehicle population as of February 2026.