Jakarta is seeing a surge in electric vehicle affordability thanks to government incentives, with prices now reaching approximately $9,600 USD. Coordinating Minister for Economic Affairs Airlangga Hartarto announced the price drop Thursday amid ongoing efforts to expand Indonesia’s automotive market and transition to cleaner energy sources. However, this increased accessibility presents a new challenge for city planners as officials anticipate potential increases in Jakarta’s already significant traffic congestion, necessitating immediate and long-term solutions.
Jakarta –
Government incentives are driving down the price of electric vehicles in Indonesia, with Coordinating Minister for Economic Affairs Airlangga Hartarto stating that prices are now around Rp 150 million (approximately $9,600 USD). This affordability is largely due to incentives like the government-subsidized Value Added Tax (PPN DTP) of 10% on electric vehicles, which are currently in effect through the end of 2025.
“With the innovations and policy improvements Indonesia has made, cars are now priced at Rp 150 million, which is something extraordinary,” Hartarto said during the launch of the Gig Economy and AI Open Innovation Challenge at the Jakarta Creative Hub on Thursday, December 18, 2025.
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However, Hartarto cautioned that the increased availability of affordable cars could exacerbate traffic congestion in Jakarta, presenting a challenge for Jakarta Governor Pramono Anung. The potential for increased congestion comes as Indonesia seeks to expand its automotive market and promote electric vehicle adoption.
“I must issue a warning: the more affordable cars there are, the more congested Jakarta will become. This is something the Governor will need to address,” Hartarto added.
As a short-term solution, the government is promoting Work From Anywhere (WFA) policies to alleviate traffic. The initiative aims to reduce congestion without impacting productivity levels.
“The quickest short-term solution, which I reported to the cabinet, is work from anywhere and work from everywhere, reducing congestion while hopefully maintaining productivity,” he explained.
Civil servants (ASN), including both permanent employees and contract workers, are permitted to work remotely during the Christmas and New Year’s 2025/2026 period (Nataru), specifically from December 29-31, 2026.
The Ministry of Manpower has also encouraged private companies to adopt WFA systems during Nataru, with the same timeframe of December 29 to December 31, 2025, recommended for private sector employees.
(ily/ara)
