Indonesian Finance Minister Purbaya Yudhi Sadewa stated that the government is preparing incentives for electric vehicles (EVs), targeting 100,000 electric cars and 100,000 electric motorcycles in 2026.

"The first 100,000 units, and if they are fully taken up, we will provide more incentives," Purbaya said at a press conference on the state budget report, APBN Kita, in Jakarta on 5th May.

He further added that the detailed scheme will be announced by Industry Minister Agus Gumiwang Kartasasmita and Coordinating Minister for Economic Affairs Airlangga Hartarto. He estimated that subsidies for electric motorcycles could be around IDR 5 million (US$ 310) per unit, although the final figures will be confirmed later in coordination with the relevant ministries.

Purbaya stated that interest in EV incentives followed a meeting earlier in the day with Agus Gumiwang. The policy, he said, is intended to curb fuel consumption and reduce the government's energy subsidy burden amid rising global oil prices.

"I am interested in the proposal to provide subsidies for electric vehicles. In addition to boosting consumption, fuel use can be reduced. If accelerated, this could strengthen the resilience of the state budget going forward," he said.

He agreed with the Industry Ministry's position that EV development should form part of a broader strategy for the national economy, particularly through support for the manufacturing sector and job protection.

"This is aimed at driving economic growth in the near term, especially in the third and fourth quarters. Implementation is expected to begin in early June," Purbaya said, adding that the policy has been discussed but will be formally announced by the relevant ministers.

"The focus is on ensuring that all sectors of the economy are operating. Demand is being supported, alongside measures for the manufacturing sector," he further added.

Earlier, Industry Minister Agus Gumiwang stated that EV incentives are being considered in the context of emissions reduction goals and shifting trends in the automotive market towards electric vehicles, influenced by geopolitical tensions and energy uncertainty.

In addition to discussing EV stimulus, Agus stated that the two ministers also explored measures to increase Indonesia's manufactured exports.