A new push for electric vehicles is about to roll out, and it could shape how people move in the coming months. The government has confirmed that subsidies for electric vehicles will be introduced this year in Indonesia. Finance Minister Purbaya Yudhi Sadewa said the program is set to begin in early June 2026. The initial phase targets 200,000 units. That includes 100,000 electric cars and 100,000 electric motorcycles.
For motorcycles, the support is already clear. Each unit will receive Rp5 million. The figure for electric cars is still being discussed and has not been finalized.
“Roughly how much will we give for electric cars? The first 100,000 subsidies will be provided. If they run out, we will add more. The same goes for electric motorcycles. The first 100,000 units will receive support. How much? Rp5 million,” Purbaya said during the APBN KITA press conference on Tuesday, May 5, 2026.
Details on how the electric vehicles subsidies in Indonesia will be distributed are still being finalized. The Ministry of Industry and the Coordinating Ministry for Economic Affairs will announce the full scheme at a later stage.
For the government, this is not only about cleaner transport. It is also part of a short-term economic strategy. The policy is expected to support growth in the third quarter and beyond, with early June marked as the starting point.
“This is to encourage short-term economic growth going forward, in the third quarter and beyond. It will start in early June as one of the policies. The Minister of Industry and the Coordinating Minister for Economic Affairs will announce further details,” he said.
“Our spirit is to ensure that all economic engines will run. Demand is already moving, and now we are focusing on the manufacturing sector,” he added.
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At the regional level, Jakarta is keeping its own incentives in place. The provincial government continues to offer exemptions from Motor Vehicle Tax and Vehicle Title Transfer Fees for electric vehicles. Electric cars also remain free from the odd-even traffic restriction.
This approach follows the Circular Letter of the Minister of Home Affairs Number 900.1.13.1/3764/SJ, which outlines fiscal incentives for battery-based electric vehicles. The policy at the local level stays aligned with the central government.
“Following the issuance of the Circular Letter of the Minister of Home Affairs Number 900.1.13.1/3764/SJ on fiscal incentives in the form of PKB and BBNKB exemptions for battery-based electric vehicles, the Jakarta Provincial Government’s policy is aligned with these provisions, namely continuing to provide incentives in the form of PKB and BBNKB exemptions for battery-based electric vehicles,” said Lusiana Herawati, Head of the Jakarta Regional Revenue Agency, in a statement on May 5, 2026.
These incentives are meant to support the broader electric vehicle ecosystem. The policy is also linked to environmental goals.
“We will continue to maintain the exemption from the odd-even rule for battery-based electric vehicles. This policy is part of efforts to encourage the use of more environmentally friendly vehicles, in line with the commitment to reduce emissions and strengthen a sustainable urban transportation system,” said Syafrin Liputo, Head of the Jakarta Transportation Agency.
The Jakarta administration has made it clear that it will keep supporting the transition toward clean energy. At the same time, it will continue to follow national policy directions.
