Jakarta, CNBC Indonesia - The government\u2019s policy opening the door to\nreductions or withdrawal of electric vehicle incentives has drawn\nrejection from user communities. EVOLVE (EV Omoda Elevate), which\nrepresents owners of Omoda E5 electric cars, has expressed strong\nobjections to the issuance of a new regulation deemed to disrupt the\nnational energy transition direction.<\/p>\n
The community, registered as a member of the Indonesian Motor\nAssociation (IMI), views the latest regulation as sending a signal\ncontrary to the commitment to developing zero-emission vehicles in\nIndonesia.<\/p>\n
For information, the government through the Ministry of Home Affairs\n(Kemendagri) has recently issued a new regulation that will impose taxes\non electric vehicles in Indonesia. Namely, Minister of Home Affairs\nRegulation Number 11 of 2026 on the Basis for Imposition of Motor\nVehicle Tax, BBNKB, and Heavy Equipment Tax (Permendagri No 11\/2026). In\nthis new regulation, electric vehicles are not mentioned as objects\nexempted from PKB and BBNKB. Thus, battery-based cars or electric\nvehicles may be subject to Motor Vehicle Tax (PKB) and Motor Vehicle\nOwnership Transfer Fee (BBNKB).<\/p>\n
Permendagri No 11\/2026 has been signed by Interior Minister Tito\nKarnavian and takes effect upon promulgation, namely 1 April 2026.<\/p>\n
\u201cWith this, we convey rejection, condemnation, and deep concern over\nthe issuance of the regulation within the scope of government policy\nthat leads to the reduction and\/or withdrawal of incentives for\nBattery-Based Electric Motor Vehicles (KBLBB), as stipulated in the\nRepublic of Indonesia Minister of Home Affairs Regulation Number 11 of\n2026,\u201d wrote EVOLVE in its statement on Wednesday (22\/4\/2026).<\/p>\n
The policy is seen as giving local governments the authority to no\nlonger provide various electric vehicle incentives that previously\napplied. This situation is said to risk reducing public interest amid\nunstable global energy prices.<\/p>\n
\u201cLocal governments have the authority to no longer provide incentives\nthat previously applied to electric vehicles, which is a step backward\nand inconsistency in the government\u2019s commitment to building a\nzero-emission vehicle climate,\u201d the statement continued.<\/p>\n
Amid efforts to reduce the energy subsidy burden, user communities\nbelieve electric vehicles should instead accelerate their adoption, not\nbe slowed by unsupportive fiscal policies.<\/p>\n
\u201cIn a situation like this, acceleration of electric vehicle use\nshould be intensified to reduce the state budget burden in providing\nfuel subsidies,\u201d wrote EVOLVE.<\/p>\n
From the industry perspective, the momentum for electric vehicle\ngrowth is still in its early stages. Therefore, the continuity of\nincentives is considered crucial to maintain market attractiveness while\nencouraging ecosystem formation.<\/p>\n
\u201cStopping incentives at this phase will directly impact the hindered\nformation of the zero-emission vehicle ecosystem, reduce investor\nconfidence, slow market penetration, and weaken Indonesia\u2019s position in\nglobal competition,\u201d wrote EVOLVE.<\/p>\n
Direct impacts on consumers are also highlighted, particularly\nregarding the potential increase in electric vehicle ownership\ncosts.<\/p>\n
\u201cThe withdrawal of electric vehicle incentives directly affects\nconsumers\u2026 increasing the costs that must be incurred for Motor Vehicle\nTax (PKB) and Motor Vehicle Ownership Transfer Fee (BBNKB) payments,\u201d\nwrote EVOLVE.<\/p>\n
Moreover, the policy change deemed sudden is said to be able to\ndamage public trust in the overall direction of government policy.<\/p>\n
\u201cSudden policy changes can create uncertainty\u2026 and weaken the\ncredibility of public policy itself,\u201d it continued.<\/p>\n
On the other hand, demands are also directed directly to the central\nand local governments to evaluate or even revoke the regulation.<\/p>\n
\u201cWe firmly urge the Government, particularly the Minister of Home\nAffairs, to immediately revoke the regulation, or at the very least,\nmake changes to the provisions that impact the withdrawal of electric\nvehicle incentives,\u201d EVOLVE asserted.<\/p>\n
The community hopes the government can formulate more measured and\ntransparent policies, including a clear incentive roadmap to avoid\nmarket disruptions.<\/p>\n
\u201cThe government also needs to prepare a clear, phased, and\ntransparent incentive transition roadmap so that all stakeholders can\nmake more planned adjustments,\u201d they wrote.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/report-to-mr-tito-electric-vehicle-owners-protest-and-demand-repeal-of-tax-regulation-1776851564", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }