Indonesia’s Finance Minister Purbaya Yudhi Sadewa said the government is discussing electric vehicle (EV) incentives with regulators and industry players, with details still under review as it seeks to accelerate adoption.
Purbaya said talks with the Association of Indonesian Automotive Industries have included proposals for incentives for electric cars, though no final scheme has been agreed upon.
On electric motorcycles, Purbaya said the Finance Ministry is coordinating with Minister of Industry Agus Gumiwang Kartasasmita, with incentives likely targeting newer-generation models.
“I will continue discussions with the Minister of Industry on possible incentives for new electric motorcycles,” he said.
Agus confirmed ongoing coordination, saying the size and structure of incentives remain under deliberation.
“We are still discussing it,” Agus said on Thursday.
He added the government is preparing regulations to accelerate EV adoption, particularly motorcycles, which dominate Indonesia’s transport market.
At the same time, production of conventional motorcycles will continue but be redirected toward export markets, especially non-traditional destinations.
Agus said President Prabowo Subianto has directed a shift toward electric-based vehicles to reduce reliance on fossil fuels.
“There is no other option but to transition to electricity as the need to cut dependence on fossil fuels becomes clearer,” he said.
President Prabowo Subianto on Thursday said Indonesia aims to begin mass production of electric sedans by 2028 as part of efforts to develop its domestic electric vehicle industry.
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