Indonesia Rethinks EV Stimulus Timing Amid Broad Industry Calls for Expansion

JAKARTA, Investortrust.id — A highly anticipated consumer stimulus package designed to jumpstart Indonesia's electric vehicle (EV) market appears to be facing a delay, just as the nation’s powerful automotive lobby pushes for a broader net of incentives that would include traditional combustion engines.

The initiative, which promises a $314 (Rp 5 million) subsidy per electric car purchased, was notably absent from the government's recently announced second-half 2026 economic stimulus package. The subsidy is now tentatively expected to be announced in August.

The Policy Pivot

Finance Minister Purbaya Yudhi Sadewa expressed surprise regarding the potential delay on Monday, June 29, 2026. Speaking at the parliamentary complex in Jakarta, Purbaya noted that he had not received official communication regarding a shift from the previously planned July rollout.

“He hasn’t spoken to me yet,” Purbaya said, referring to Coordinating Minister for Economic Affairs Airlangga Hartarto. Purbaya emphasized that he would need to consult with Airlangga to confirm the program's timeline.

The EV stimulus is a cornerstone of the administration's strategy to foster short-term economic growth in the latter half of the year. During a press briefing in May, Purbaya detailed the plan to initially subsidize 100,000 EV units. "If it runs out, we will give more. If it runs out, we will give more to encourage economic growth in the short term," he stated at the time.

Automakers Demand a Wider Net

As the government fine-tunes its EV strategy, the Association of Indonesia Automotive Industries (Gaikindo) is advocating for a more inclusive approach to industry support. The association has formally proposed extending stimulus measures to all vehicle categories, encompassing internal combustion engines (ICE), hybrids (HEV), plug-in hybrids (PHEV), and battery electric vehicles (BEV).

Anton Kumonty, Daily Chairman and Head of the Gaikindo Exhibition and Conference Organizer, praised the government’s existing efforts to create a conducive investment climate on Monday, June 29, 2026. He highlighted the success of initiatives like the user-specific duty-free scheme (USDFS), which exempts import duties on raw materials and components not yet produced domestically, significantly boosting production efficiency. According to Gaikindo, 57 of the 74 companies utilizing this scheme are from the automotive sector.

Furthermore, Gaikindo views the government-borne value-added tax (PPN DTP) incentive as a critical driver in the national automotive industry's recovery.

Leveling the Playing Field

The call for broader incentives comes as new players enter the Indonesian market. Jongkie Sugiarto, Gaikindo’s Head of Market Development, noted that emerging Chinese automakers are seeking the same level of policy support traditionally enjoyed by established Japanese manufacturers.

"Seeing the government's support for the Japanese automotive industry in Indonesia, several automotive companies from China that are currently starting to invest in Indonesia have expressed their desire to get the same support," Jongkie stated, highlighting the country's continued appeal as a global automotive investment destination.

Gaikindo maintains that expanding the stimulus to all vehicle types is necessary to sustain the overall growth of the automotive market and ensure a competitive, healthy industry ecosystem.