Indonesia's Finance Minister, Purbaya Yudhi Sadewa, has stated that the government is targeting June 2026 for the implementation of incentives for electric vehicles (EVs), including electric motorcycles and cars, as part of efforts to reduce fuel consumption.

"We will calculate and prepare the budget. What is clear is that implementation is targeted to begin in early June," Purbaya said during a press conference held by the Financial System Stability Committee (KSSK) in Jakarta on May 7th.

He stated that the EV incentive policy is intended to encourage a shift in consumption from fuel to electricity. He added that the policy is expected to help reduce Indonesia's imports of fuel and crude oil.

"This will help strengthen economic resilience. The focus should not be solely on the subsidy itself. The primary objective is to make the economy more resilient from an energy perspective," Purbaya said.

The government is preparing incentives for 100,000 electric cars and 100,000 electric motorcycles in 2026. For electric motorcycles, the government has allocated IDR 5 million (US$ 290) per unit.

Electric cars will receive government-covered value-added tax (VAT) incentives ranging from 40% to 100%, depending on the type of battery used, including nickel-based and non-nickel battery technologies.

The VAT incentives apply only to battery electric vehicles and do not cover hybrid vehicles.

"For cars, the incentives will vary. Some will receive 100-percent VAT coverage, while others will receive 40%. It depends on the battery," he said.

He previously stated that EVs using nickel-based batteries would receive larger subsidies as part of the government's efforts to support Indonesia's nickel industry.