Southeast Asian nations accelerate electric vehicle transition

Southeast Asian nations are accelerating their transition to electric vehicles (EV) through various subsidy and policy frameworks.

In Indonesia, the government plans to resume an electric motorcycle subsidy program in September 2026. Finance Minister Purbaya Yudhi Sadewa stated the proposed subsidy is 3 million rupiah (approximately 169 USD) per motorcycle, a reduction from the 7 million rupiah provided last year. The government has allocated 3 trillion rupiah for the program, aiming to support the purchase of 1 million electric motorcycles. However, officials noted that domestic production capacity remains a challenge; it is estimated that only 100,000 motorcycles will be produced by the end of the year, reaching only 10% of the target.

In Laos, the government is leveraging its hydroelectric resources to promote green transportation. Laos has temporarily suspended the import of gasoline-powered vehicles and set a goal to have electric vehicles account for 30% of all domestic vehicles by 2030.