Indonesia to offer subsidies up to RM23k to buyers of EV cars and bikes, hybrids, ICE to EV bike conversions

Indonesia to offer subsidies up to RM23k to buyers of EV cars and bikes, hybrids, ICE to EV bike conversions

Indonesia’s government will offer a subsidy of up to 80 million rupiah (RM22,665) to customers who purchase electric vehicles, reports CNN. This was revealed by the current minister of industry Agus Gumiwang Kartasasmita, who added that subsidies will also be provided for other electrified vehicles.

In the case of hybrid vehicles, the subsidy will be up to 40 million rupiah (RM11,332), while it is up to eight million rupiah (RM2,267) for electric motorcycles. The government will also cover up to five million rupiah (RM1,417) of the cost to convert an internal combustion engine motorcycle to an electric one.

These subsidies are aimed at promoting the uptake of electrified vehicles in the country, which is currently focused on attracting foreign investment for zero-emissions vehicles. According to Reuters, Indonesia has a target to have at least 1.2 million electric bikes and 35,000 electric vehicles in use by 2024.

There is a catch, and that is these subsidies only apply to EVs (cars and motorcycles) and hybrids that are locally assembled (CKD) in Indonesia. This makes sense to encourage local production of EVs, which some car companies are looking to embrace, as evident when Toyota Astra Motor debuted the Kijang Innova EV Concept earlier this year.

Indonesia to offer subsidies up to RM23k to buyers of EV cars and bikes, hybrids, ICE to EV bike conversions

Agus Gumiwang said his ministry will discuss with the ministry of finance on whether fully imported (CBU) electrified vehicles would also be eligible for subsidies. However, he did not provide a timeline for when the subsidy scheme will be implemented or how much the government will have to set aside to support it.

Indonesia’s approach to promoting EV adoption is not dissimilar to what’s happening in Thailand, where subsidies of between 70,000 and 150,000 baht (RM8,861 and RM18,983) are provided for both CBU and CKD EVs – both countries also implemented tax and duty breaks.

Malaysia doesn’t offer subsidies to EV buyers, but CBU EVs are currently exempt from excise and import duties until December 31, 2024. Meanwhile, CKD EVs are exempted from excise duties and sales tax, while components for local assembly of EVs are exempted from import duty until December 31, 2025.

GALLERY: Toyota Kijang Innova EV Concept

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.



  • Rafizi sembang kencang on Dec 16, 2022 at 5:43 pm

    We need better initiatives compared to Indonesia.

    Like or Dislike: Thumb up 11 Thumb down 0
  • Bieight8 on Dec 16, 2022 at 8:33 pm

    Our government should offer 20k subsidies for cbu and 50k subsidies for CKD ev

    Like or Dislike: Thumb up 5 Thumb down 4
  • tricycle on Dec 18, 2022 at 7:17 am

    This is smart. The Indonesian government just don’t simply hand out the subsidy to the EV buyer but only to the EV car that is produced in Indonesia. CKD. Bring more job, bring investment to Indonesia.

    We should emulate that, rather than give what we give now to the EV car. We want their investment and we want job creation for Malaysian and also a technology transfer etc.

    Compared to other countries we have far better infrastructure and what ever recipe to make their EV investment here work.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Rafizi Formula 2023 on Dec 19, 2022 at 8:08 am

    Msia can claim EV equipment tax exempted from lhdn okla RM2.5k.

    Like or Dislike: Thumb up 0 Thumb down 0

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