JAKARTA - The disparity in electric vehicle (EV) policies between\nJakarta and other regions is becoming increasingly evident, particularly\nfollowing the issuance of new regulations that grant greater authority\nto local governments in determining incentives.<\/p>\n
This situation is seen as potentially impeding the acceleration of\neco-friendly vehicle adoption, as the support received by the public\nbecomes uneven.<\/p>\n
According to Andry Satrio Nugroho, Head of the Center for Industry,\nTrade, and Investment at INDEF, the government needs to pay serious\nattention to this disparity to ensure that EV adoption is not\nconcentrated solely in major cities.<\/p>\n
The situation has become even more complex following the issuance of\nMinister of Home Affairs Regulation (Permendagri) Number 11 of 2026,\nwhich changes the approach to electric vehicle incentives from a\npreviously more uniform one to one that depends on the policies of each\nregion.<\/p>\n
Under the regulation, electric vehicles are no longer automatically\nexempt from Motor Vehicle Tax (PKB) and Motor Vehicle Ownership Transfer\nTax (BBNKB), but remain subject to taxation.<\/p>\n
However, the amount of tax imposed is not uniform because the central\ngovernment provides room for local governments to determine incentives,\nranging from reductions to exemptions.<\/p>\n
Moreover, the regulation does not differentiate the coefficient\nbetween electric vehicles and conventional fuel-based vehicles, so in\nbasic tax calculations, both are treated equally.<\/p>\n
For example, DKI Jakarta still provides full incentives in the form\nof 0% PKB and exemption from BBNKB for electric vehicles.<\/p>\n
On the other hand, regions with limited fiscal capacity may not be\nable to provide similar incentives, meaning the attractiveness of EVs to\nthe public could differ significantly between regions, potentially\ncreating new gaps in technology adoption.<\/p>\n
Andry assesses that this condition could widen the gap in electric\nvehicle adoption.<\/p>\n
Without competitive incentives, people in the regions will tend to\nstick with petrol (BBM)-powered vehicles, which are more affordable in\nterms of initial price.<\/p>\n
\u201cIf there is no strong fiscal support in the regions, then EV\nincentives will be difficult to implement. This ultimately makes EV\nadoption happen only in certain areas,\u201d he said.<\/p>\n
He also highlighted that the success of non-fiscal policies, such as\nrestrictions on emission-based vehicles through odd-even schemes or\nlow-emission zones, greatly depends on the readiness of public\ntransportation.<\/p>\n
As a solution, Andry encourages the central government to introduce a\nspecial funding scheme that can help regions build an EV ecosystem,\nincluding electric-based public transportation.<\/p>\n
One relevant option is the utilisation of revenues from motor vehicle\nemission excise taxes.<\/p>\n
With such support, electric vehicle policies are expected not to run\npartially between regions, but rather to become a more equitable\nnational movement in curbing transport sector emissions.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/the-future-of-evs-evaluating-incentive-disparities-across-regions-1776415887", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }