Ministry of Industry Says Incentives Successfully Boosted Electric Vehicle Population

KatadataOTO – The Indonesian government is promoting the adoption of electric vehicles in Indonesia. This is in order to reduce air pollution.

Then, to reduce the substantial Fuel Oil (BBM) subsidies. Thus being able to save on the state budget.

The Ministry of Industry (Kemenperin) stated that the current population of Electric Vehicles (EVs) in the country has reached 274,802 units.

This number was obtained from vehicle data that has undergone Type Test Registration Certification (SRUT), through the Ministry of Transportation (Kemenhub) as of June 24, 2025.

Photo : KatadataOTO

“This condition occurs along with the implementation of the policy to accelerate the Battery-Based Electric Motor Vehicle (KBLBB) ecosystem,” said Mahardi Tunggul Wicaksono, Director of Maritime Industry, Transportation Equipment, and Defense Equipment (ILMATAP) of the Ministry of Industry in Jakarta, Monday (25/08).

Indeed, it should be remembered that the government provides a number of stimuli to the public. For example, the incentives stipulated in Presidential Regulation 79/2023 concerning amendments to Presidential Regulation 55/2019.

The aides to President Prabowo Subianto provide incentives for the purchase of Battery Electric Vehicles (BEVs) through various schemes.

Furthermore, Tunggul stated that the electric vehicle population in Indonesia continues to show an increase. Considering that in 2023 there were only 116,439 units.

Meanwhile, if broken down from the 274,802 units, four-wheeled passenger vehicles contributed up to 77,277 units.

Then, electric motorcycles have a fairly large portion, namely around 196,000 units. Meanwhile, there are only 617 electric three-wheelers, and the rest are commercial.

Of course, the statistics above show the success of the program run by the government so far. It has been able to encourage the public to switch from conventional vehicles.

Tunggul explained that Internal Combustion Engine (ICE) based vehicles have experienced a market share decline. Because in 2021, it could reach a level of 99.64 percent.

Whereas from January to July 2025, it was in the range of 82.2 percent. Thus, public interest in electric vehicles is starting to grow.

Photo : KatadataOTO

“This reflects a shift in consumer preferences towards more efficient and environmentally friendly vehicles,” Tunggul affirmed.

Nevertheless, this condition must receive serious attention. Because it is starting to erode the existence of conventional four-wheeled and two-wheeled vehicles.

Presenting a major threat to manufacturers that have been established for decades. Making their business quite shaky in recent times.