DKI Provincial Government Prepares Fairer Electric Vehicle Tax Scheme

JAKARTA - The Indonesian government has confirmed that electric vehicles will no longer be entirely exempt from Motor Vehicle Tax (PKB) and Motor Vehicle Re-Registration Tax (BBNKB), following the issuance of Minister of Home Affairs Regulation Number 11 of 2026.

The regulation changes the previous scheme, which provided full exemptions, into a policy that gives room for local governments to determine the amount of incentives, either in the form of reductions or exemptions.

Jakarta Governor Pramono Anung stated that his administration is currently preparing derivative regulations to adapt the policy at the local level.

According to him, electric vehicles have so far received various facilitations, from tax exemptions to exemptions from odd-even traffic restrictions, so future policies need to be formulated in a more balanced manner.

Nevertheless, opportunities for incentives remain open because the regulation provides flexibility to local governments to determine policies according to their respective conditions.

“For those that are exempted, we will exempt 100 percent, but for those that are charged, we will reduce and so on. That is what we will decide soon,” Pramono said.

The Jakarta Regional Revenue Agency (Bapenda) previously stated that it is currently designing an optimal fiscal incentive scheme for electric vehicles so as not to burden the public.

The policy is part of the Jakarta Provincial Government’s efforts to maintain regional economic stability amid global economic pressures, while still encouraging the adoption of electric vehicles in society.