DKI Jakarta Leads with Electric Vehicle Incentives and Exemption from Odd-Even Rule
The policy of the DKI Jakarta Provincial Government to resume incentives for electric vehicles, ranging from tax exemptions to exemption from the odd-even rule, is seen as not only having a local impact but also potentially serving as a reference for other regions in Indonesia.
Head of the Center of Industry, Trade and Investment at INDEF, Andry Satrio Nugroho, views DKI Jakarta’s steps as showing consistency in promoting energy transition, while also sending a strong signal to the market and industry players.
“This shows policy consistency from the DKI Provincial Government in supporting energy transition. And this becomes a fairly strong signal to the market that Jakarta is serious,” Andry told Kompas.com on Tuesday (5/5/2026).
“DKI is taking a firm choice to continue supporting the acceleration of the electric vehicle ecosystem. This can certainly serve as an example for other regions,” he said.
He explained that the combination of fiscal incentives, such as tax exemptions, and non-fiscal incentives, such as exemption from odd-even, has proven effective in increasing public interest in electric vehicles.
“This combination can empirically increase adoption. This becomes a strong value proposition for consumers,” said Andry.
Furthermore, he assessed that policies like this are not merely about short-term incentives, but part of long-term investment in mitigating environmental impacts, particularly air pollution in urban areas.
“The environmental costs are significant, even if not visible in regional budgets. So this can be seen as forward investment,” he stated.
With its large fiscal capacity, DKI Jakarta is seen as having room to implement such progressive policies.
However, Andry emphasised that other regions can still adapt similar policies according to their respective conditions.
In addition, he also reminded that the push for electric vehicles should be accompanied by strengthening public transportation as part of a broader transportation sector strategy.
With an integrated approach, policies like those implemented by DKI Jakarta are assessed to be able to serve as a model for other regions in accelerating the transition to more environmentally friendly transportation.