AEML Welcomes Electric Vehicle Tax Incentives, Boosts National EV Ecosystem
JAKARTA, KOMPAS.com - The Indonesian Electric Vehicle Ecosystem Association (AEML) has welcomed the issuance of the Minister of Home Affairs’ Circular (SE Mendagri) Number 900.1.13.1/3764/SJ regarding the provision of fiscal incentives in the form of exemptions and reductions in Motor Vehicle Tax (PKB) and Motor Vehicle Ownership Transfer Tax (BBNKB) for battery-based electric vehicles.
This policy is seen as a strong signal of the government’s sustained support for the development of the electric vehicle (EV) ecosystem in Indonesia, while also providing certainty for the industry in planning long-term investments.
AEML’s General Secretary, Rian Ernest, emphasised that the policy is not merely an administrative regulation but reflects the government’s consistency in accelerating national electrification.
“AEML greatly appreciates the birth of the Minister of Home Affairs’ Circular (SE) Number 900.1.13.1/3764/SJ. This is not just a normative directive,” Rian stated in an official statement on Monday (27/4/2026).
“Rather, it is a strong signal that the government is consistently implementing the mandate of Presidential Regulation Number 55 of 2019 and its amendment in Presidential Regulation Number 79 of 2023 on the Acceleration of the Battery-Based Electric Motor Vehicle Programme,” Rian continued.
“This step aligns with the President’s vision to respond to the global energy crisis through accelerated electrification, to achieve clean air and energy sovereignty for all Indonesian people,” he added.
AEML assesses that the PKB and BBNKB incentive policy provides space for regional governments (Pemda) to formulate strategies suited to the characteristics of their respective regions, while also serving as an important instrument in attracting EV ecosystem investments.
According to Rian, fiscal certainty at the regional level will be a key factor in attracting industry players, from vehicle manufacturers and charging infrastructure developers to supporting industries such as batteries and spare parts.
“We are confident that the leadership of the Governors will ensure these incentives continue to run seamlessly, without interruptions that could hinder the investment momentum that the industry has built so far,” he said.
“We are ready to support smooth implementation across all 38 provinces,” he affirmed.