Inp.polri.go.id - Jakarta. Minister of Finance Purbaya Yudhi Sadewa has announced that the government is finalizing a Value Added Tax Borne by the Government (PPN DTP) incentive scheme for electric vehicles (EV).

The proposed incentive will range from 40% to 100%, specifically targeting pure electric vehicles while excluding hybrid models.

"The government-borne VAT will be between 40% and 100%. We are currently structuring the specific schemes," Minister Purbaya said during the "APBN KiTa" press conference on Tuesday (5/5/2026), as reported by antaranews.com. 

He explained that the amount of the incentive would be determined by the type of battery used, with a clear distinction between nickel-based and non-nickel batteries.

Vehicles utilizing nickel-based batteries are set to receive higher subsidies to accelerate the domestic nickel industry and ensure that Indonesia's significant nickel reserves remain a cornerstone of the global EV supply chain. 

"We want our nickel to be used so that the downstreaming of battery technology continues to progress," Minister Purbaya added, responding to global shifts toward alternative battery chemistries.

For 2026, the government aims to provide incentives for 100,000 electric cars and 100,000 electric motorcycles. While the exact figures are being coordinated with Minister of Industry Agus Gumiwang Kartasasmita, Minister Purbaya estimated a subsidy of approximately Rp 5 million for electric motorcycles. 

Beyond industrial growth, the Minister emphasized that shifting to EVs is a critical strategy to reduce fuel consumption and ease the burden of energy subsidies amid rising global oil prices.

(mg/inp/pr/rs)