Industry Minister Agus Gumiwang Kartasasmita said on August 17th that the government's planned IDR 5 million (US$ 280) incentive for electric two-wheeler purchases is awaiting the issuance of a Finance Ministry regulation (PMK) before it can be implemented.

Agus said the Industry Ministry, as the technical implementing ministry, is ready to implement the programme once the regulation is issued, but he could not confirm when the incentive would take effect.

"We are waiting for the PMK, we are ready. The Ministry of Industry, as the technical ministry, is ready. We are just waiting for the PMK. Once the PMK is issued, we will make the necessary adjustments," Agus told media.

Agus said the timing of the programme depends entirely on the Finance Ministry and that he could not set a target for its implementation.

The government is also discussing which electric two-wheeler brands will qualify for the incentive. The discussions involve the Industry Ministry, state investment agency Danantara Indonesia and the Finance Ministry.

Finance Minister Purbaya Yudhi Sadewa proposed in April that the electric two-wheeler incentive programme be introduced this year. The programme is expected to be implemented in stages, with the initial phase targeting around 6 million two-wheelers.

Purbaya said the programme remained under review and would be discussed further with Agus and Coordinating Minister for Economic Affairs Airlangga Hartarto.

The preliminary proposal calls for an incentive of around IDR 5 million per electric two-wheeler, although the amount could still change before the policy is finalised.