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On the 12th, Indonesian Finance Minister Purbayana announced that, in response to the escalating international oil prices triggered by the situation in the Middle East and the subsequent increased burden of energy imports, Indonesia is actively fostering a shift in its energy consumption landscape. The country has outlined plans to introduce a fresh round of subsidy policies for electric vehicles (EVs), slated to commence in June 2026. According to the preliminary blueprint, Indonesia aims to offer subsidies for 100,000 electric cars and an equal number of electric motorcycles. Electric cars will be eligible for value-added tax incentives spanning from 40% to 100%, contingent on the battery type. Notably, this policy will exclusively apply to pure electric vehicles, excluding hybrid models.
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