The Indonesian government is preparing a new incentive scheme for electric vehicles that is expected to take effect in 2026. The proposed incentives are focused on battery electric vehicles (BEVs), while hybrid vehicles are not currently included in the scheme under consideration.

Achmad Rofiqi, Deputy Chairman for Public Relations and Education of the Indonesian Electric Vehicle Industry Association (Periklindo), stated that the association has consistently supported incentives for pure electric vehicles.

"If you look at China, the government there spent approximately 10 to 12 years supporting the development of the electric vehicle industry before gradually reducing its intervention, in the initial stages, the government provided support. In fact, vehicles categorised as range extenders or plug-in hybrid electric vehicles (PHEVs) received the same incentives as pure electric vehicles," Rofiqi said.

According to Rofiqi, each country adopts a different strategy for developing its electric vehicle industry. For Indonesia, battery electric vehicles are regarded as the primary direction for the development of the country's vehicle electrification industry.

"From Periklindo's perspective, there is a clear vision. From the beginning, the organisation's vision and mission have been to support the development of new and renewable energy. Periklindo was also established based on the government's policy regarding Battery-Based Electric Motor Vehicles (KBLBB)," said Rofiqi.

Therefore, Periklindo considers that a policy focused on pure electric vehicles is consistent with the original objective of establishing a national electric vehicle ecosystem.

"We believe that the direction of industrial development should remain focused on battery-based electric vehicles," he said.

According to Rofiqi, pure electric vehicles have the potential to support the energy transition because they do not rely on fossil fuels during operation.

"That is why we encourage the government, where possible, to give attention to pure electric vehicles powered by renewable energy compared with technologies that continue to rely on fossil fuels, ultimately, the objective is to transition to cleaner energy use," Rofiqi said.

Under Minister of Finance Regulation (PMK) Number 12 of 2025, hybrid vehicles continue to receive support through a 3% Luxury Goods Sales Tax (PPnBM) incentive borne by the government. The incentive applies to full hybrid, mild hybrid and plug-in hybrid electric vehicles (PHEVs).