Indonesia to Launch EV Incentives June 2026

Indonesia plans to launch electric vehicle incentives in early June 2026 to cut fuel use and reduce oil imports, according to Finance Minister Purbaya Yudhi Sadewa. The government has prepared a budget for the program targeting 100,000 electric cars and 100,000 electric motorcycles this year.

Motorcycle Subsidy Program

Electric motorcycles will receive a 5 million rupiah (US$290) subsidy for each unit purchased under the incentive scheme.

Electric Car Tax Incentives

For electric cars, the government will cover 40% to 100% of value added tax on battery electric vehicles. Hybrid vehicles are excluded from the tax break.

Battery Type Differentiation

The tax break will vary by battery type. Models using nickel batteries will receive larger support compared to non-nickel vehicles, according to the announcement.