Electric Vehicle Tax No Longer Free, Pramono Prepares Incentives
The central government has issued a new regulation that will impose taxes on electric vehicles in Indonesia. This new policy is outlined in Minister of Home Affairs Regulation No. 11 of 2026 on the Basis for Imposing Motor Vehicle Tax, Luxury Goods Sales Tax on Motor Vehicles, and Heavy Equipment Tax.
The regulation was signed by Minister of Home Affairs Tito Karnavian and promulgated on 1 April 2026. Whereas previously battery-based electric motor vehicles were not subject to Motor Vehicle Tax and Luxury Goods Sales Tax on Motor Vehicles, under this new regulation, Battery-Based Electric Motor Vehicles are no longer automatically exempt from local taxes.
In response to this, the Regional Revenue Agency (Bapenda), which is a Regional Work Unit of the DKI Jakarta Provincial Government, stated that it is preparing an optimal fiscal incentive scheme by utilising the policy space provided in the latest Minister of Home Affairs Regulation.
“These incentives are designed to reduce the tax burden borne by the public, without conflicting with applicable statutory provisions,” Bapenda DKI Jakarta stated in its official release on Monday (20/4/2026).
This step reflects a balanced approach between compliance with national regulations and protection of public purchasing power. The DKI Jakarta Provincial Government not only acts as a policy implementer but also as a facilitator ensuring that the public continues to receive tangible benefits.
In addition, the designed incentive policy is also in line with the vision of Jakarta as a sustainable city. The use of electric vehicles remains a priority in efforts to reduce emissions and improve air quality in Jakarta.
Bapenda conveyed that the DKI Jakarta Provincial Government wants to ensure that this regulatory change does not diminish public interest in electric vehicles.
“On the contrary, with targeted incentives, it is hoped that the electric vehicle ecosystem in Jakarta will continue to grow positively. With a spirit of serving and protecting, the DKI Jakarta Provincial Government reaffirms its commitment to remaining pro-public,” Bapenda emphasised.
Unfortunately, Bapenda has not yet provided further details regarding the incentives in question.