Government Prepares EV Incentives, Electric Car Subsidies Reach 40 Percent

JAKARTA - The government is preparing a new stimulus package for electric vehicles (electric vehicles/EV) which is targeted to be announced in the next two to three weeks. One of the incentives prepared is a subsidy of up to 40 percent for certain categories of electric cars.

Minister of Finance Purbaya Yudhi Sadewa said President Prabowo Subianto would announce the policy in the near future.

According to him, the EV stimulus includes support for around 500 thousand electric motorcycles as well as incentives for electric cars.

"I think in two or three weeks from now the President will launch a stimulus for EVs, including 500 thousand motorbikes and electric cars, there is a 100 percent exemption for luxury goods, VIPs, paid for by the government and 40 percent for certain electric vehicles," he said. at the GAIKINDO International Automotive Conference, Tuesday, August 4.

However, Purbaya did not explain in detail the incentive scheme that was being prepared and asked the public to wait for an official announcement from the President because the government was still finalizing the stimulus mechanism.

"I forgot the details (about the details of the VAT incentive) Later the President will announce it," he said.

Purbaya emphasized that based on the scheme currently known to the government, the stimulus is specifically aimed at electric vehicles and does not include hybrid or plug-in hybrid cars.

"I haven't heard of that plan, what I hear is that the plan is only EV, battery nickel-based and battery lithium-based are also slightly different," he said.

According to Purbaya, the provision of electric vehicle stimulus is part of the government's strategy in responding to increasing global geopolitical uncertainty, including the prolonged conflict in the Middle East region.

He added that the geopolitical conditions are considered to have the potential to keep world oil prices high for a long time, so the government encourages the acceleration of the adoption of electric vehicles to reduce Indonesia's dependence on fuel oil imports (BBM).

"So we have to adapt. My government and Mr. Prabowo want to reduce our dependence on oil imports very significantly, which is why we are promoting electric vehicles," he explained.