DKI Provincial Government Reveals Reasons for Exempting Electric Vehicle Tax

JAKARTA - Special Staff to the Governor and Deputy Governor of Jakarta for Public Communications, Chico Hakim, has outlined several reasons behind the DKI Jakarta Provincial Government’s decision to exempt electric vehicles from taxes. He stated that the policy follows regulations set by the central government. “As we know, local governments anywhere, whether the DKI Jakarta Provincial Government or other provincial, regional, or regency governments, are extensions of the central government. Certainly, we will follow the policies that are planned and deemed appropriate,” Chico explained during the Kompas Siang programme, quoted from Kompas TV’s YouTube, on Thursday (7/5/2026). “The presence of electric vehicles brings many benefits, including energy savings since they do not use fossil fuels. Secondly, in terms of Jakarta, which has quite high pollution levels, the existence of electric vehicles can certainly help reduce that,” Chico said. He added that the DKI Provincial Government hopes the national and global economic conditions will improve, allowing new policies related to electric vehicles to be implemented in the future. “As mentioned earlier by Governor Pramono Anung, the decision is that (the DKI Provincial Government) will continue to exempt tax fees and will not impose the odd-even policy on electric vehicles,” Chico stated. Previously reported, the DKI Jakarta Provincial Government continues to provide exemptions for Motor Vehicle Tax (PKB) and Motor Vehicle Transfer Tax (BBNKB) for battery-based electric motor vehicles. Additionally, electric vehicles remain exempt from the odd-even rule. Head of the DKI Jakarta Regional Revenue Agency (Bapenda), Lusiana Herawati, said the policy is in line with the Ministry of Home Affairs’ Circular Number 900.1.13.1/3764/SJ regarding fiscal incentives for electric vehicles. According to her, this policy aims to encourage the public to switch to more environmentally friendly vehicles. The same sentiment was expressed by the Head of the DKI Jakarta Transportation Agency, Syafrin Liputo. He confirmed that electric vehicles remain exempt from the odd-even rule. “This policy is part of efforts to promote the use of more environmentally friendly vehicles, in line with commitments to reduce emissions and strengthen a sustainable urban transportation system,” Syafrin said.