Indonesia To Offer $5,000 Subsidy On Electric Car Sales
Indonesia's government plans to offer a subsidy of more than $5,000 on every sale of an electric car, a minister said on Wednesday.
It will also offer incentives to encourage purchases of electric motorbikes as well as hybrid cars, Industry Minister Agus Gumiwang Kartasasmita said, as part of plans to reduce carbon emissions in Southeast Asia's largest economy.
The incentives will offered to buyers of EVs produced by firms with factories in Indonesia, he said in a video statement.
A subsidy of around 80 million rupiah ($5,131) will be offered on every sale of an electric car, 40 million rupiah on hybrid cars and 8 million rupiah on fully electric motorbikes, the minister said.
The government will also cover 5 million rupiah of the cost to convert a combustion engine motorbike into an electric one, he added.
He did not provide a timeline for when the scheme will be implemented nor the total budget it will require.
Senior Minister Luhut Pandjaitan said previously that the program may start next year.
Indonesia has a target of at least 1.2 million electric bikes and 35,000 electric vehicles in use by 2024.
($1 = 15,590.0000 rupiah)
(Reporting by Stefanno Sulaiman; editing by Jason Neely)
Related News
Latest Cars
Upcoming Cars
Latest News
car&bike Team | Mar 3, 2026Ducati Desmo450 MX Teased Ahead of India LaunchThe Ducati Desmo450 MX is expected to be launched in India soon, as early as sometime later in March 2026.1 min read
car&bike Team | Mar 3, 2026Is this the Vida VXZ Electric Motorcycle?A test mule of an almost production-ready electric motorcycle has led to speculation that it could be the upcoming Vida VXZ electric motorcycle.2 mins read
Shams Raza Naqvi | Mar 3, 2026Vinfast Unveils Two New Ultra Luxury Models, Restructures Brand LinesThe Vietnamese car company has announced that its vehicles will fall in three brand lines with Lac Hong being the luxury brand.1 min read
car&bike Team | Mar 3, 2026Raptee.HV T30 Electric Motorcycle Deliveries BeginThe Chennai-based start-up Raptee.HV has begun large-scale customer deliveries of the brand’s first electric motorcycle – the Raptee T30.1 min read
Shams Raza Naqvi | Mar 3, 2026From Vitara Brezza To Brezza: Maruti’s Subcompact SUV Completes A Decade In The MarketThe SUV has seen a major switch from being just a Diesel model to being just a Petrol in the last few years.2 mins read
car&bike Team | Mar 2, 2026Yezdi Roadster Red Wolf Launched at Rs 2.10 LakhYezdi has expanded the Roadster line-up with a new Red Wolf colourway, now the most premium shade in the range.1 min read
Bilal Firfiray | Feb 28, 2026Tata Punch EV Facelift Review: More Range, More Sense, Less MoneyThe Tata Punch EV facelift gets a bigger 40 kWh battery, faster 60 kW DC charging, improved thermal management, and better real-world range, and all of that at a lower introductory price. But does it become a more complete package now?6 mins read
Preetam Bora | Feb 24, 2026Hero Destini 110 Review: Simplicity, RefinedThe Hero Destini 110 is a no-nonsense commuter that is simple, comfortable and above all, fuel efficient. In 2026, when buyers are spoilt for choice, is it good enough to consider?1 min read
Preetam Bora | Feb 23, 2026TVS Apache RTX Road Test Review: Redefining the Entry-Level ADVAfter spending some time with the TVS Apache RTX in traffic, the daily commute, as well as on open highways, one thing becomes clear: the RTX is trying to redefine the entry-level ADV segment. But is it without fault?1 min read
Girish Karkera | Feb 20, 2026Road Test: 2025 VinFast VF7 AWD Sky InfinityFlagship all-electric SUV from the Vietnamese car maker gets most of the basics right.1 min read
Jaiveer Mehra | Feb 18, 2026New BMW X3 30 Vs Mercedes-Benz GLC 300: Midsize Luxury SUV FaceoffWith the new X3 30, BMW has a direct competitor to the petrol GLC 300, but which is the luxury SUV for you?1 min read