Indonesia Plans New EV Subsidy Policy Amid Middle East Tensions

Indonesia's Finance Minister, Purbaya, announced on May 12 in Jakarta that the country is accelerating its transition in energy consumption structure due to heightened tensions in the Middle East, which have increased international oil prices and the burden of energy imports. According to Jin10, Purbaya stated that the prolonged Middle East tensions have led to higher global oil prices, raising Indonesia's fuel and crude oil import costs in the short term. To mitigate external risks, the government is exploring incentives to encourage the public to use more electric cars and motorcycles, reducing reliance on fossil fuels. The new round of electric vehicle subsidy policy is planned to be launched in June 2026.