{
    "success": true,
    "data": {
        "id": 1704851,
        "msgid": "electric-vehicle-incentives-deemed-to-trigger-fragmentation-in-regional-tax-schemes-1777341273",
        "date": "2026-04-28 07:42:00",
        "title": "Electric Vehicle Incentives Deemed to Trigger Fragmentation in Regional Tax Schemes",
        "author": "Agung Kurniawan",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Regulation",
        "summary": "Indonesia's policy to exempt electric vehicles from motor vehicle taxes has drawn criticism for shifting responsibility to local governments, potentially creating policy uncertainty and fragmenting tax schemes. Experts from INDEF warn that this could deter long-term investments in the electric vehicle ecosystem, which has seen USD 2.73 billion in foreign investment over the past three years, while WRI Indonesia stresses the need to maintain incentives to sustain market growth from 2.2% in 2023 to 16.9% in 2025 and support the net zero emissions target by 2060. Amid global energy price volatility and subsidies exceeding Rp 100 trillion, consistent central-level policies are urged to avoid hindering electrification efforts and reducing reliance on imported fuels.",
        "content": "<p>JAKARTA, KOMPAS.com - The policy of tax exemptions for electric\nvehicles is back in the spotlight following the Ministry of Home\nAffairs\u2019 preparation of technical regulations as a follow-up to the\ncircular on regional fiscal incentives. Amid uncertainty in global\nenergy prices and subsidy pressures, the direction of this policy is\ndeemed to require careful scrutiny.<\/p>\n<p>The Ministry of Home Affairs Circular No.\u00a0900.1.13.1\/3764\/SJ, a\nderivative of Minister of Home Affairs Regulation No.\u00a011 of 2026,\nencourages local governments to provide incentives in the form of\nexemptions from Motor Vehicle Tax (PKB) and Motor Vehicle Ownership\nTransfer Fee (BBNKB) for battery-based electric vehicles. This means\nthat the decision to grant incentives now lies more in the hands of each\nregion.<\/p>\n<p>Head of Industrial and Transport Decarbonization at INDEF GTI, Andry\nSatrio Nugroho, regrets this step. He assesses that shifting\nresponsibility from the central government to the regions could reduce\npolicy certainty for industry players.<\/p>\n<p>\u201cIf incentives are indeed considered important to accelerate vehicle\nelectrification, the policy should remain consistent at the central\nlevel,\u201d he told Kompas.com on Monday (27\/4\/2026).<\/p>\n<p>From an investment perspective, this situation is also seen as risky.\nIn the last three years, foreign investment in the electric vehicle\necosystem has reached USD 2.73 billion or approximately Rp 40 trillion.\nINDEF views that regulatory uncertainty could disrupt investor interest\nthat requires long-term certainty.<\/p>\n<p>Meanwhile, WRI Indonesia emphasises the importance of maintaining the\nmomentum of electric vehicle growth domestically. Data shows that the\nmarket share of electric cars has increased significantly from 2.2\npercent in 2023 to 16.9 percent in 2025.<\/p>\n<p>\u201cAmid global energy price volatility, incentives should be maintained\nso that demand growth does not stall,\u201d said Senior Manager for Resilient\nCities &amp; Transport at WRI Indonesia, I Made Vikannanda.<\/p>\n<p>According to WRI, a slowdown in electric vehicle adoption could\npotentially hinder achieving the net zero emissions target by 2060,\nwhile prolonging dependence on imported fuel oil and the pressure of\nenergy subsidies that have exceeded Rp 100 trillion.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/electric-vehicle-incentives-deemed-to-trigger-fragmentation-in-regional-tax-schemes-1777341273",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}