Indonesia weighs ending electric cars’ Jakarta traffic exemption
Industry Minister M Sarmuji plans to consult Periklindo before deciding on the exemption and also raised possible support for certain hybrids.
Electric cars’ exemption from Jakarta’s odd-even traffic restrictions will be reviewed after the government hears the arguments behind a proposal to remove it, Indonesian Industry Minister M Sarmuji said on 28 October 2026.
Sarmuji told reporters that electric-vehicle industry association Periklindo would meet ministry officials to present its views. CNBC Indonesia reported that the proposal had been raised by the association’s chairman, M Moeldoko. The minister said the government would examine the reasons for withdrawing the non-fiscal incentive and assess the advantages and disadvantages for the electric-vehicle industry before choosing whether to retain it.
Separately, Sarmuji discussed possible incentives for two types of hybrid vehicle: plug-in hybrid electric vehicles (PHEVs) and range-extended electric vehicles (REEVs). He said their potential fuel savings could ease the burden of fuel subsidies and provide environmental benefits.
He gave no details on what that support might involve. Sarmuji said incentives for electrified vehicles still required consideration of both automotive industry support and benefits for the public and the environment.
