Finance Minister Purbaya Yudhi Sadewa stated that the government will accelerate the provision of subsidies for electric vehicles. The state treasurer said President Prabowo Subianto had instructed the government to reduce fuel consumption and begin shifting toward electric vehicles. 

Following discussions with the Ministry of Industry, the government stated that it is prepared to provide incentives for 100,000 units each of electric cars and motorcycles. 

Purbaya said the figure could increase depending on future demand. 

“We have already calculated the budget. If that runs out, we will provide another 100,000,” Purbaya said in Central Jakarta on Wednesday, 6 May. 

He said the government plans to begin distributing the electric vehicle incentives in June 2026. However, the plan still requires approval from President Prabowo. 

“I want to accelerate it. Domestic capacity is not that large either. It seems to be only around 300,000 per year,” Purbaya said. 

Purbaya said he had received information indicating that domestic production capacity is currently capped at around 300,000 units annually. However, he stated that the government would not impose a limit on the incentives. 

“If it is not enough, we will add more. So I want to see an acceleration in the shift toward EVs in line with the President’s directive,” Purbaya said. 

This article is published in partnership with Katadata 

Original article here