Indonesian Finance Minister Purbaya Yudhi Sadewa stated on Tuesday that he expects the Indonesian economy to grow by more than 5.5% in the third and fourth quarters of 2026.
“The growth rate in the third and fourth quarters will exceed 5.5%. My target is 6%,” Purbaya told reporters at the Finance Ministry office in Jakarta on Tuesday.
To achieve this goal, Purbaya said the government plans to introduce incentives for purchasing electric vehicles (EVs), targeting sales of 100,000 electric cars and 100,000 electric motorcycles.
The government has allocated 5 million Indonesian rupiah per electric motorcycle. Meanwhile, incentives for electric cars will be provided in the form of value-added tax (VAT) discounts, ranging from 40% to 100% depending on the battery type.
The VAT discount policy will apply only to pure electric vehicles, excluding hybrid vehicles. The discount amount will depend on the battery type, divided into nickel-based and non-nickel batteries.
The policy applies only to pure electric vehicles, not hybrid models. Purbaya said the government plans to implement the policy starting in June 2026.
Purbaya also noted that the government will engage with export-oriented industries, including textiles, furniture, and footwear, to discuss the financing channels these sectors require.
“I will hold another meeting as soon as possible so they can access better and cheaper financing. I can provide support through the Indonesian Export Financing Institution (LPEI). There is actually a lot of idle funds there,” Purbaya explained.
He added that the government is considering further measures to support lending to the real economy, including potentially injecting liquidity into banks.
