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)
Latest News
car&bike Team | Jul 25, 2026River Indie Electric Scooter Crosses 50,000 Units Production MilestoneThe milestone comes less than three years after the first unit rolled out of the company's Hoskote manufacturing facility.2 mins read
car&bike Team | Jul 25, 20262026 Maruti Brezza Facelift Fuel Efficiency Figures RevealedThe updated model returns up to 26.90 km/kg in CNG guise, while the newly introduced turbo-petrol delivers a claimed 20.47 kmpl.2 mins read
Jafar Rizvi | Jul 25, 2026Honda ZR-V Hybrid SUV Launched In India At Rs 47.99 LakhThe ZR-V is Honda’s first hybrid SUV for India and arrives as a CBU.1 min read
Jafar Rizvi | Jul 24, 20262026 Maruti Brezza Facelift: Variants, Features, Engine Options ExplainedThe 2026 Maruti Suzuki Brezza is offered in four trim levels: LXi, VXi, ZXi and ZXi+ and with two engine options.5 mins read
Jafar Rizvi | Jul 24, 20262026 Maruti Brezza Facelift Launches With Three Major FirstsThe 2026 Maruti Suzuki Brezza has arrived, and along with carrying a five-star Bharat NCAP rating, the model brings three firsts for both the Brezza and, in one case, Maruti itself.2 mins read
Jaiveer Mehra | Jul 24, 20262026 Maruti Suzuki Brezza Facelift Launched; Price Starts At Rs 7.40 LakhUpdated Brezza arrives with a new turbo-petrol engine option and a new 6-speed manual gearbox aside from new features.2 mins read
Bilal Firfiray | Jul 24, 2026Honda ZR-V Review: Who Is It For?Honda has brought the new ZR-V to India as their current flagship offering. It’s a CBU, it’s a hybrid, and it’s here for a limited few. Who is it for though?1 min read
Shams Raza Naqvi | Jul 15, 2026Ferrari 849 Testarossa Spider Driven: Rs. 11.25 Crore Meets 1,000 bhpWe got behind the wheel of the most powerful convertible from Ferrari. What makes the 849 Testarossa Spider Special? We tell you.1 min read
Bilal Firfiray | Jul 12, 2026Tata Sierra EV Review: Reborn In The Electric AgeThe Tata Sierra EV isn’t drastically different from its ICE counterpart when it comes to design. But being the seventh electric offering from the Indian brand, it has gotten a few things right, and very few things wrong. But is it a compelling package to buy?5 mins read
Jafar Rizvi | Jul 13, 2026TVS Orbiter Long-Term Review (Report 1): Settling In Takes TimeFirst impressions weren't the strongest, but the Orbiter has made a mark in its first month in the car&bike garage.5 mins read
Seshan Vijayraghvan | Jul 7, 2026Tata Altroz Petrol DCA Long-Term Review: Intercity & Highway Driving ReportWe tested the Tata Altroz Petro DCA’s highway manners, intercity performance, and real-world fuel efficiency.1 min read