The continuation of electric vehicle (EV) incentives in 2025 is seen as a positive driver for the multifinance industry, despite a cooling economy and weaker consumer purchasing power compared to last year. Indonesia’s economic growth slowed to 4.87% in Q1 2025, down from 5.11% in Q1 2024. Nevertheless, Sylvanus Gani, CFO of PT Adira Dinamika Multi Finance Tbk. (ADMF), believes these incentives can still boost financing activity. By making EVs more affordable, they expand the potential customer base. Sylvanus emphasized that even in today’s more cautious economic climate, operational savings offered by EVs continue to attract interest from cost-conscious consumers. ADMF reported a 124% year-on-year increase in EV financing by April 2025, totaling IDR 242 billion, with a target of 30% annual growth this year.
Industry expert Jodjana Jody also supports the incentive program, noting its proven impact in countries like China, where similar policies since 2010 have helped accelerate EV adoption. However, he questioned Indonesia’s long-term ability to maintain such subsidies. He sees this year’s incentives as a crucial tipping point. If the market doesn’t respond well or public trust in EV technology falters, he suggests shifting to transitional solutions like hybrids or flexible-fuel engines to maintain momentum in clean energy adoption. In summary, while challenges remain, both finance professionals and observers remain optimistic about the sector’s growth potential driven by continued government support for EVs.
