Electric Vehicles No Longer Automatically Tax-Exempt, Here Are the New Rules

The government has amended the vehicle taxation scheme through Minister of Home Affairs Regulation (Permendagri) No. 11 of 2026 on the Basis for Imposition of Motor Vehicle Tax (PKB), Motor Vehicle Transfer Tax (BBNKB), and Heavy Equipment Tax. This regulation serves as the new reference for local governments in setting vehicle tax rates, including for battery-based electric vehicles (KBLBB) or battery electric vehicles (BEV). Under this regulation, electric vehicles are no longer objects excluded from PKB and BBNKB. In other words, ownership and transfer remain subject to the taxation scheme. However, the imposition of taxes is not absolute. The central government still provides room for incentives in the form of exemptions or reductions, as regulated in Article 19. The amount of such incentives is left to each local government. Therefore, electric vehicle tax policies going forward will no longer be uniform and may vary between regions. For example, in DKI Jakarta, under Governor Regulation No. 38 of 2023 referencing Permendagri No. 6 of 2023, electric vehicles are subject to 0 per cent PKB from the tax base and are not subject to BBNKB. Such a scheme is still possible but is not a national standard as it depends on local government decisions. On the other hand, Permendagri No. 11 of 2026 also stipulates that PKB calculation is based on two main components, namely the Motor Vehicle Sales Value (NJKB) and the weight coefficient, as regulated in Article 14. The weight reflects the level of road damage and/or environmental pollution caused by the use of motor vehicles, which forms the basis for determining the tax amount. For example, the BYD M6, a battery-based electric minibus, has a coefficient of 1.050. This figure is the same as the Daihatsu Xenia, which uses an internal combustion engine (ICE). This similarity confirms that the basic tax calculation for electric vehicles is now not differentiated or given special privileges. The related policy has been signed by Minister of Home Affairs Tito Karnavian and promulgated on 1 April 2026.