Indonesian Political, Business & Finance News

Electric Vehicles Begin to Be Treated on Par with Conventional Cars

| | Source: KOMPAS Translated from Indonesian | Regulation
Electric Vehicles Begin to Be Treated on Par with Conventional Cars
Image: KOMPAS

JAKARTA, KOMPAS.com – Amid efforts to accelerate the adoption of electric vehicles, policy directions are now showing new signals. The still very limited population of electric vehicles is beginning to be positioned on par with internal combustion engine (ICE) vehicles, particularly in taxation schemes. Through Ministry of Home Affairs Regulation (Permendagri) Number 11 of 2026, the government stipulates that battery electric vehicles (BEVs) remain subject to Motor Vehicle Tax (PKB) and Motor Vehicle Re-Registration Fee (BBNKB). This means that, by regulation, electric cars are no longer automatically in the category exempted from taxes. On the other hand, the tax assessment basis between electric vehicles and conventional vehicles is no longer differentiated. PKB calculation still refers to the Motor Vehicle Sales Value (NJKB) and weight coefficients that reflect impacts on roads and the environment. In the regulation’s attachment, there is no difference in weight between electric cars and fossil fuel-powered cars. For example, an electric vehicle like the BYD M6 has coefficients equivalent to similar segment conventional cars. This confirms that, in terms of basic tax calculation, both are now treated equally. This situation arises at a time when the adoption rate of electric vehicles in Indonesia is still in the early stage. In fact, to encourage a more mature ecosystem, several parties assess that a minimum threshold of around 10 percent of the total vehicle population is needed for adoption to develop organically. “An ecosystem can be considered mature if it has passed the early adopter phase, and that is usually around 10 percent,” said National Energy Council (DEN) Member Sripeni Inten to Kompas.com recently. She emphasised that electric vehicles are still considered new technology amid a very large vehicle population. Therefore, increased adoption in the early stage is deemed not to immediately disrupt the conventional vehicle market. “Electric vehicles are new items. In a very large population, 10 percent actually does not disrupt,” she said. Although showing a growth trend, the number of electric vehicles in Indonesia is still relatively small compared to the total motor vehicle population. The Ministry of Transportation records that by the end of 2025, the number of electric vehicles reached 342,118 units based on Type Test Registration Certificate (SRUT) data. Of that number, electric motorcycles are the largest contributors with 229,820 units, followed by electric cars at 110,524 units. The rest consist of three-wheeled vehicles, electric goods vehicles, and electric buses with much more limited numbers. However, compared to the national total motor vehicle population reaching hundreds of millions of units, that figure is still very small. In percentage terms, the number of electric vehicles has not even breached 1 percent of the total vehicle population in Indonesia.

View JSON | Print