Source: Cnnindonesia.com | July 2, 2026

The Ministry of Industry (Kemenperin) believes that the automotive industry and consumers require certainty regarding the continuation of electric vehicle incentives.

“In this regard, we urge that the industry and consumers of automotive products be given immediate certainty,” said Ministry of Industry Spokesperson Febri Hendri Antoni Arif, as reported by Antara on Wednesday (July 1).

According to him, this situation could cause the public to hold off on purchasing decisions, potentially putting pressure on the automotive industry’s performance.

“Therefore, we ask policymakers in other ministries and agencies to immediately provide certainty regarding these incentives,” Febri stated.

Amid efforts to boost vehicle sales in the second half of this year, Febri emphasized that the Ministry of Industry continues to collaborate with various industry associations to strengthen the marketing of domestically manufactured products.

The government’s plan—which had already postponed the rollout of incentives for battery-based electric vehicles (EVs) to July 1—appears unlikely to materialize on schedule. The latest reports indicate the plan has been delayed by another month, pushing it to August 2026.

This was first revealed by the government through the Coordinating Minister for Economic Affairs, Airlangga Hartarto. He stated that the electric vehicle incentives are still under review and their implementation will likely be postponed until this coming August.

This marks the second postponement, as the policy was originally scheduled to take effect in June but was previously delayed by a month to July.

Airlangga said the EV incentives are still being evaluated. The government cited the ongoing preparation for the development of a national car as the reason.

“It is still being evaluated; specifically, we are preparing a national car,” Airlangga said.

However, Airlangga did not elaborate further on the government’s considerations regarding the delay in implementing the electric vehicle incentives.

National EV incentives

An incentive plan had been formulated, with the scheme revealed as early as May 2026. At that time, the Ministry of Finance stated that the government had prepared incentives covering 200,000 electric vehicles. This figure comprised 100,000 electric cars and 100,000 electric motorcycles. The government is also keeping open the possibility of increasing the quota should public demand exceed the established targets.

The incentive program is slated to launch in June 2026 as part of efforts to boost consumer spending during the third and fourth quarters of this year, while simultaneously reducing reliance on fossil fuels.

Regarding the planned assistance scheme, the government had previously devised a Value Added Tax (VAT) subsidy—where the tax is borne by the government (PPN DTP)—ranging from 40% to 100% for electric cars.

The level of this VAT subsidy will be determined based on the nickel content of the batteries in the electric vehicles marketed in Indonesia. Meanwhile, for electric motorcycles, the government is preparing a subsidy of IDR 5 million for the purchase of each new unit.