JAKARTA: The government is preparing a new round of incentives for electric vehicle (EV) purchases set to begin in June, targeting 100,000 electric cars and 100,000 electric motorcycles as part of a broader push to stimulate demand as well as reduce fuel consumption to curb energy subsidies.
“Going forward, if this EV sales are accelerated, it should further strengthen the resilience of our state budget and economy,” Minister of Finance Purbaya Yudhi Sadewa said on Tuesday.
The planned scheme, which is currently being discussed with the industry ministry, will be rolled out in phases.
According to Purbaya, the government will initially offer incentives for 100,000 electric two-wheelers and an equal number of electric four-wheelers, and will expand the quota depending on uptake.
“If the quota is used up, we will allocate more, and if it runs out again, we will allocate more,” the minister added.
A similar approach will apply to electric motorcycles, starting with an initial subsidy of five million rupiah each.
The new scheme is expected to begin in early June and aims to boost economic growth in the third and fourth quarters.
Beyond EVs, the government is looking to stimulate manufacturing activity by facilitating cheaper financing for machinery upgrades, targeting industries such as textiles and footwear.
“Our principle now is to ensure that all engines of the economy are running, driven by the demand we are stimulating,” said Purbaya. He also emphasised a shift toward stronger private sector participation.
Minister of Industry Agus Gumiwang Kartasasmita said government incentives for electric cars and motorcycles had become increasingly relevant.
While previous schemes focused mainly on reducing emissions, the current priority was lowering fuel consumption to cut subsidies. — The Jakarta Post/ANN
