SAIC Urges Ministry of Industry to Extend Electric Vehicle VAT Incentive
11 October 2025, 09:00 WIB
The Ministry of Industry has completed the electric motorcycle incentive scheme but is still awaiting the decision from the Coordinating Ministry for
By Adi Hidayat
KatadataOTO – After failing to be provided in August 2025, electric motorcycle incentives have received a fresh breath of air. Agus Gumiwang Kartasasmita, the Minister of Industry, revealed that his party has prepared a scheme for the program.
However, his party still has to wait for a decision from the Coordinating Ministry for Economic Affairs (Kemenko Perekonomian) for the announcement regarding its value and implementation time.
"It's already finished, and as soon as Lapangan Banteng (Coordinating Ministry for Economic Affairs) determines the value and other details, we will be ready," said Agus, as reported by Antara (04/09).
He also stated that the incentive scheme could be used for this year or next year. Regarding the provided budget, Agus said that it is under the authority of the Coordinating Ministry for Economic Affairs.
"The scheme is the same, but the budget is not from the Ministry of Industry," Agus emphasized.
Last year, the government allocated a budget of Rp 1.75 trillion to provide subsidies for the purchase of 200 thousand new electric motorcycle units and 50 thousand converted motorcycle units. Thanks to this, every purchase of a new electric motorcycle received a discount of Rp 7 million.
The program is expected to be offered again to encourage the development of electrified vehicles in the country. Moreover, the population of electric motorcycles is still considered very small, so it still needs assistance.
Currently, the Ministry of Industry is still waiting for a Limited Coordination Meeting (Rakortas) with the Coordinating Ministry for Economic Affairs and other related ministries.
Afterward, the Ministry of Industry will issue a Minister of Industry Regulation (Permenperin) concerning the provision of incentives for two-wheeled vehicles in the electric segment (electric motorcycles), which is targeted for release this year.
To align with the agenda or target for this ratification, the Ministry of Industry has coordinated with related ministries, namely the Ministry of Finance, and this policy will later be discussed in the Rakortas.
It should be noted that the Ministry of Industry stated that the current population of Electric Vehicles (EVs) in the country has reached 274,802 units. This number has increased rapidly compared to 2023, which only had 116,439 units.
Of this total, four-wheeled passenger vehicles contributed up to 77,277 units. Then, electric motorcycles have the largest portion, with around 196 thousand units.
Meanwhile, there are only 617 units of electric three-wheeled vehicles, and the rest are commercial vehicles.
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