DKI Jakarta Provincial Government Officially Exempts Tax on Electric Cars and Motorcycles

JAKARTA - The DKI Jakarta Provincial Government has officially continued to exempt motor vehicle tax (PKB) and motor vehicle ownership transfer tax (BBNKB) for battery-based electric motor vehicles. This policy is in line with Circular Letter from the Minister of Home Affairs Number 900.1.13.1/3764/SJ regarding the provision of fiscal incentives in the form of exemptions from PKB and BBNKB for battery-based electric motor vehicles. The Head of the DKI Jakarta Regional Revenue Agency (Bapenda), Lusiana Herawati, explained that the policy is part of support for the development of the environmentally friendly vehicle ecosystem. “Following the issuance of Circular Letter from the Minister of Home Affairs Number 900.1.13.1/3764/SJ regarding the provision of fiscal incentives in the form of exemptions from PKB and BBNKB for battery-based electric motor vehicles, the policy of the DKI Jakarta Provincial Government is in line with those provisions, namely continuing to provide incentives in the form of exemptions from PKB and BBNKB for battery-based electric vehicles,” she said in an official statement on Tuesday (5/5/2026). Previously, controversy arose over the imposition of PKB and BBNKB instruments on battery-based electric cars following the issuance of Minister of Home Affairs Regulation (Permendagri) Number 11 of 2026 by the Minister of Home Affairs. In the regulation, pure electric vehicles are no longer automatically tax-exempt. This contrasts with Permendagri Number 7 of 2025, where renewable energy-based vehicles, including electric cars, were explicitly excluded from tax objects. This means that tax exemption incentives were provided directly without depending on local government policies. At the same time, Article 19 opens the door for taxation, with the note that local governments may provide incentives in the form of exemptions or reductions.