Addin Anugrah Siwi, Jakarta – Indonesia has postponed the rollout of its electric vehicle (EV) incentive program by one month to July 2026 as the government finalizes calculations for the subsidy scheme.

Finance Minister Purbaya Yudhi Sadewa said the government is still completing several fiscal and technical assessments before officially implementing the incentives.

"The EV incentive is still delayed by another month," Purbaya told reporters at the Coordinating Economic Ministry office in Central Jakarta on Tuesday.

He did not elaborate on which aspects remain under review, but confirmed that the incentives initially scheduled for June 2026 would not be implemented immediately.

"There are still calculations being finalized," Purbaya said.

The government previously prepared incentives for a total of 200,000 EV units, consisting of 100,000 electric cars and 100,000 electric motorcycles.

For two-wheelers, the government has allocated a subsidy of Rp 5 million ($281) per unit. Meanwhile, incentives for electric cars are still under discussion, including a potential government-borne value-added tax (VAT) scheme.

"For electric cars, we are still calculating how much support we will provide for the first 100,000 units. If that quota is exhausted, we may continue with additional support. It will be the same for electric motorcycles. For the first 100,000 units, we will provide Rp 5 million each," Purbaya said during the APBN KiTA press conference on Tuesday.

The EV incentive program is part of the government's broader stimulus package aimed at maintaining public purchasing power and boosting domestic consumption.

The policy is also intended to accelerate national EV adoption as part of Indonesia's long-term strategy to reduce dependence on fossil fuels.

The government expects the incentives to strengthen Indonesia's EV ecosystem while supporting the country's gradual energy transition agenda.

Source: https://jakartaglobe.id/business/indonesia-delays-ev-incentive-rollou