Indonesia Unveils EV Incentive Scheme for Local High‑Value Vehicles
Indonesia is preparing a new electric‑vehicle incentive programme that will focus on high‑added‑value products made by domestic manufacturers. Industry Minister Agus Gumiwang Kartasasmita said the scheme will support vehicles that create high value in the country and will be tied to the national car and electric‑motorcycle programmes. The incentives will apply only to battery‑electric vehicles, excluding hybrid and plug‑in‑hybrid models, and will include a 100 % exemption from the luxury‑goods sales tax and a 40 % government‑borne value‑added tax for eligible models. Finance Minister Purbaya Yudhi Sadewa indicated that President Prabowo Subianto will announce the stimulus within two to three weeks. The policy aims to produce 100,000 electric cars and 100,000 electric motorcycles by the end of the year and will require a high share of locally sourced components (TKDN). Commentators note the focus on nickel‑based batteries, reflecting Indonesia’s abundant nickel reserves, while lithium‑iron‑phosphate batteries are not prioritised. The scheme is part of the 2027 macro‑economic framework and will be detailed in an upcoming finance‑minister regulation.
Entities: Agus Gumiwang Kartasasmita · Esther Sri Astuti · Indonesia · Indonesian Ministry of Finance · Indonesian Ministry of Industry · President Prabowo Subianto · Purbaya Yudhi Sadewa
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 3 SOURCES] Industry Minister Agus Gumiwang Kartasasmita said the incentives will support products that create high added value in Indonesia. (6ff168de-9201-401b-83c1-1b603d0f4392, f8f90894-ad47-40fc-8542-d2e9044c6421, 9d6e7a09-72aa-440e-a6a3-a223688cfed1)
- [● 2 SOURCES] The incentive policy will target battery electric vehicles (BEVs) and exclude hybrid and plug‑in hybrid models. (f8f90894-ad47-40fc-8542-d2e9044c6421)
- [○ 1 SOURCE] Indonesia will focus on nickel‑based EV batteries rather than lithium‑iron‑phosphate batteries due to raw‑material availability. (6ff168de-9201-401b-83c1-1b603d0f4392)
- [○ 1 SOURCE] The incentive package includes a 100 % exemption from the luxury‑goods sales tax (PPnBM) and a 40 % government‑borne VAT for eligible models. (f8f90894-ad47-40fc-8542-d2e9044c6421)
- [● 3 SOURCES] The Indonesian government will prioritize EV incentives for local brands and high‑value‑added products. (6ff168de-9201-401b-83c1-1b603d0f4392, 9d6e7a09-72aa-440e-a6a3-a223688cfed1)
- [● 2 SOURCES] Eligibility for incentives will require a high share of locally sourced components (TKDN). (9d6e7a09-72aa-440e-a6a3-a223688cfed1)
- [○ 1 SOURCE] President Prabowo Subianto is set to announce a major EV stimulus package within two to three weeks. (f8f90894-ad47-40fc-8542-d2e9044c6421)
- [● 2 SOURCES] The government aims to produce 100,000 electric cars and 100,000 electric motorcycles by the end of the year. (6ff168de-9201-401b-83c1-1b603d0f4392, f8f90894-ad47-40fc-8542-d2e9044c6421)