Indonesia Reviews Extension of Electric Vehicle Incentives for 2025

Government to Assess Impact on Sales, Industry, and Employment

The Indonesian government is currently reviewing whether to extend electric vehicle (EV) incentives into 2025. Finance Minister Purbaya Yudhi Sadewa stated that the decision to continue or discontinue the incentives will depend on their impact on car sales, industry development, and employment. The current incentives are set to expire at the end of 2025.

Purbaya explained that the Ministry of Finance has not yet received a formal proposal from the Ministry of Industry regarding the continuation of EV incentives. The government will carefully assess the effects of the incentives before making a decision.

The EV incentives have been instrumental in promoting the adoption of electric vehicles in Indonesia, contributing to the growth of the automotive industry and supporting environmental sustainability goals. The government's decision will be crucial in determining the future trajectory of the EV market in the country.