Central Java Provincial Government Cancels Tax on 20,000 Electric Vehicles

REPUBLIKA.CO.ID, SEMARANG – The Central Java Provincial Government (Pemprov Jateng) has confirmed that it will not impose taxes on more than 20,000 electric vehicles in its territory. This is in accordance with the instructions contained in Circular Letter (SE) of the Minister of Home Affairs Number 900.1.13.1/3764/SJ on the Provision of Fiscal Incentives in the Form of Exemption from Motor Vehicle Tax (PKB) and Motor Vehicle Transfer Tax (BBNKB) for Battery-Based Electric Motor Vehicles.

The Acting Head of the Regional Revenue Management Agency (Bapenda) of Central Java Province, Muhamad Masrofi, revealed that initially, his agency had considered implementing PKB for electric vehicles. This followed the issuance of Ministry of Home Affairs Regulation Number 11 of 2026 on the Basis for Imposing PKB, BBNKB, and Heavy Equipment Tax, which takes effect from 1 April 2026.

Masrofi explained that in mid-April 2026, the heads of Bapenda across Indonesia held a meeting in Bandung, West Java. They discussed the appropriate PKB percentage to be applied to electric vehicles. The meeting in Bandung was also intended to prevent disparities or inequalities in PKB across various regions.