Changes to Electric Vehicle Taxes: Central Java to Determine Its Own Incentives

SEMARANG, KOMPAS.com - Through Ministry of Home Affairs Regulation Number 11 of 2026, battery-based electric vehicles are now designated as objects of Motor Vehicle Tax (PKB) and Motor Vehicle Ownership Transfer Tax (BBNKB). With this new regulation, electric vehicles no longer fall into the category of automatic tax exemption. This means that, under the regulation, electric vehicles remain subject to PKB and BBNKB, although the rates do not have to be the same as for conventional fuel-based vehicles. Provincial governments now have the leeway to determine the amount of incentives, ranging from rate discounts to partial tax exemptions, in accordance with each region’s fiscal policies. Deputy Head of the Registration and Identification Sub-Directorate of the Central Java Police Traffic Directorate, AKBP Prianggo Malau, emphasised that the regulation still refers to the central government, but its implementation is carried out by the regions. “For PKB and BBNKB as well as the treatment of electric vehicles, the regulation is governed by the Ministry of Home Affairs. Then, the implementation in Central Java is handled by the Provincial Government through the Provincial Revenue Agency,” he told Kompas.com on Tuesday (21/4/2026). In Central Java, the implementation of these rules falls under the Provincial Government through the Regional Revenue Agency (Bapenda). Meanwhile, the electric vehicle tax policy in Central Java is still in the determination stage. This decision will greatly influence the cost of ownership as well as the direction of electric vehicle adoption in the area. Not only the vehicle price, but also annual tax components and ownership transfer costs are now heavily influenced by the policies of the region where the vehicle is registered.