Electric Vehicle Tax Deemed More Burdensome Than Opsen

JAKARTA - Amid the controversy surrounding the 2026 vehicle tax, the public is beginning to compare the opsen scheme with the new provisions in Ministerial Regulation No. 11 of 2026, which opens the door for taxing electric vehicles. At first glance, they appear similar as both grant greater authority to local governments, but they have fundamental differences that directly impact society. According to Andry Satrio Nugroho, Head of the Center for Industry, Trade, and Investment at INDEF, the main difference lies in how the policies position taxes relative to taxpayers. He explained that under the opsen scheme, adjustments are made without creating new burdens. Even with additional levies from regions, the total burden on society theoretically does not change significantly. However, the approach in Ministerial Regulation 11/2026 is seen as heading in a different direction. Andry views this policy not merely as a reorganisation but as expanding the tax base to include items previously untaxed. “This regulation is different because it is not a reorganisation but changes the status of electric vehicles from previously exempt to taxable objects. From the consumer’s perspective, this clearly creates a new burden that did not exist before,” he stated. This change, Andry continued, has the potential to cause a shock effect in the market, particularly for consumers who previously saw electric vehicles as an attractive option with fiscal incentives. When incentives turn into burdens, perceptions of electric vehicles also shift. He added that in a situation where non-subsidised fuel prices are rising, society should have more alternatives. However, with the emergence of potential new taxes, those choices become more limited. The impact is deemed broader than opsen. While opsen can still be addressed with relaxations in some regions, the electric vehicle tax policy could directly affect purchasing interest. This situation is feared to slow the adoption of electric vehicles, which is still in its early stages in Indonesia. In fact, at this phase, incentives are considered more necessary than disincentives to allow the market to grow. Furthermore, Andry also warned of the potential for inter-regional market distortions. Differences in tax policies could drive consumers to buy vehicles in areas with lighter burdens, ultimately risking harm to regions with higher rates. With these various risks, the government is seen as needing to re-evaluate the policy direction to avoid clashing with the national agenda for accelerating vehicle electrification.