Indonesia Launches New EV Subsidy in June, 100K Pure EVs Get VAT Benefits

Indonesia plans to launch a new round of electric vehicle subsidy policies starting June 2026. Affected by Middle East tensions pushing international oil prices higher, Indonesia's energy import burden has increased significantly. This round of subsidies will support 100,000 electric vehicles and 100,000 electric motorcycles. Electric vehicles can receive VAT benefits ranging from 40% to 100% depending on battery type. The policy applies only to pure electric vehicles; hybrid models are not eligible.