Indonesian Political, Business & Finance News

Additional Annual Costs for Electric Vehicles Based on the Latest Regulations

| | Source: KOMPAS Translated from Indonesian | Regulation
Additional Annual Costs for Electric Vehicles Based on the Latest Regulations
Image: KOMPAS

Over the past few years, owners of electric vehicles in Indonesia have been able to smile widely when viewing the tax sticker on their vehicle registration (STNK). This is because the motor vehicle tax (PKB) rate listed is usually zero rupiah, meaning it’s free.

However, that era is entering a new chapter. Through Minister of Home Affairs Regulation No. 11 of 2026, the government has now established the basis for calculating taxes on battery-based electric motor vehicles (KBL).

Electric vehicles are no longer free from taxation; instead, they officially become taxable objects, with calculations aligned to those for conventional vehicles.

It should be understood that the basis for imposing PKB under this new regulation is the product of the motor vehicle sales value (NJKB) multiplied by the coefficient weight. For the passenger car category, which is the most common in Indonesia, here are the coefficients:

Taking an example simulation using the BYD M6, which falls into the Minibus category. If the NJKB of this vehicle is set at Rp350,000,000, then the PKB imposition basis is:

Rp350,000,000 x 1.050 = Rp367,500,000.

2% x Rp367,500,000 = Rp7,350,000.

The figure of Rp7.35 million is the actual tax value for that electric vehicle if there are no incentives. For comparison, under the old regulation (Minister of Home Affairs Regulation 7/2025), this amount automatically becomes zero.

Although the above figure appears large, Article 19 in this regulation serves as a temporary “saviour.” Local governments are still authorised to provide incentives in the form of exemptions or reductions.

However, what consumers need to underline is the word “Reduction.” If in the future the local government only provides a reduction incentive of 90 percent, then owners of electric vehicles still have to pay the remaining 10 percent.

In the BYD M6 simulation above, owners must prepare funds of around Rp735,000 per year just for PKB, not including STNK administration fees and SWDKLLJ.

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