{
    "success": true,
    "data": {
        "id": 1717869,
        "msgid": "bahlil-proposes-differentiating-taxes-on-fuel-and-electric-vehicles-1777942356",
        "date": "2026-05-05 07:22:00",
        "title": "Bahlil Proposes Differentiating Taxes on Fuel and Electric Vehicles",
        "author": "Agung Kurniawan",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Regulation",
        "summary": "Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, has proposed differentiating tax treatments between fuel-powered and electric vehicles to accelerate the shift to cleaner energy and boost domestic electric vehicle adoption, highlighting their lower costs, environmental benefits, and reduced reliance on imported fuel. Although recent regulations have ended automatic tax exemptions for electric vehicles, provisions still allow for exemptions or reductions, and the Minister of Home Affairs has urged local governments to maintain fiscal incentives to support economic stability amid global energy price fluctuations and promote renewable energy development. Local authorities are required to report their policies on these incentives by 31 May 2026.",
        "content": "<p>JAKARTA - Indonesia\u2019s Minister of Energy and Mineral Resources\n(ESDM), Bahlil Lahadalia, has opened discussions on differentiating tax\ntreatments between vehicles powered by fuel (BBM) and electric vehicles.\nThis step is seen as one strategy to accelerate the transition from\nfossil fuels to cleaner energy, while also promoting the penetration of\nelectric vehicles in the domestic market. \u201cPerhaps in the future, we\nneed to create policies where vehicles using petrol might have different\ntax treatments compared to electric vehicles, because they are cheaper,\nenvironmentally friendly, and do not depend on imported fuel,\u201d he stated\nat the IPB Alumni Synergy for the Nation event, broadcast online on\nMonday (4\/5\/2026). \u201cThe costs are relatively cheaper, so the conversion\nto electric vehicles needs to be continuously encouraged,\u201d he added. On\nthe regulatory side, discussions on electric vehicle taxes are ongoing.\nPreviously, electric vehicles enjoyed exemptions from Motor Vehicle Tax\n(PKB) and Motor Vehicle Ownership Transfer Duty (BBNKB). However,\nthrough Minister of Home Affairs Regulation Number 11 of 2026, electric\nvehicles are no longer automatically excluded. In other words, the\npossibility of imposing PKB and BBNKB is now open. Nevertheless, the\nregulation still provides room for incentives. Article 19 states that\nbattery-based electric vehicles can receive exemptions or reductions in\ntaxes, both for new units and those already in circulation before 2026.\nNot long after, Minister of Home Affairs Tito Karnavian instructed all\nregional governments to continue providing fiscal incentives for\nelectric vehicles. This was outlined in Circular Letter Number\n900.1.13.1\/3764\/SJ dated 22 April 2026. In the circular, governors are\nasked to consider exemptions from PKB and BBNKB for electric vehicles as\nan effort to maintain economic stability amid global energy price\nfluctuations, while supporting the development of renewable energy.\nRegional governments are also required to report the policies taken\nregarding these incentives to the Ministry of Home Affairs no later than\n31 May 2026.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bahlil-proposes-differentiating-taxes-on-fuel-and-electric-vehicles-1777942356",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}