Electric Vehicles No Longer Tax-Free, DKI Provincial Government Provides Relief
The introduction of Ministry of Home Affairs Regulation No. 11 of 2026 on the Basis for Imposition of Motor Vehicle Tax (PKB), Motor Vehicle Ownership Transfer Fee (BBNKB), and Heavy Equipment Tax grants authority to local governments to establish policies for imposing PKB and BBNKB, including for Battery-Based Electric Motor Vehicles (KBLBB).
However, the DKI Jakarta Provincial Government has reaffirmed its commitment to continue supporting the use of electric vehicles amid the central government’s adjustments to motor vehicle tax policies.
Previously, electric vehicles in DKI Jakarta received significant incentives. In the explanation from the DKI Jakarta Regional Revenue Agency regarding DKI Jakarta Governor Regulation No. 38 of 2023, which refers to Ministry of Home Affairs Regulation No. 6 of 2023, the imposition of PKB for battery-based electric vehicles was set at 0 percent of the PKB base, and the transfer of ownership was also incentivised by not being subject to BBNKB, in accordance with applicable laws and regulations. Now, with the regulatory adjustments from the central government, this scheme no longer applies automatically as before.
Therefore, the DKI Jakarta Provincial Government through the Provincial Regional Revenue Agency is preparing anticipatory measures so that this regulatory change does not immediately burden the public by preparing an optimal fiscal incentive scheme utilising the policy space available in the latest regulations. This scheme is directed towards reducing the tax burden that the public must bear, while remaining aligned with applicable laws and regulations.
This step is part of efforts to maintain a balance between compliance with national regulations and protection of public purchasing power. In this context, the DKI Jakarta Provincial Government understands that people who choose electric vehicles have essentially contributed to driving the transition towards cleaner energy and more environmentally friendly mobility. Therefore, even though there are changes in policy foundations at the national level, the local government continues to strive to keep electric vehicles an affordable choice for Jakarta residents.
On the other hand, the incentives being prepared are also in line with the vision of Jakarta as a more sustainable city. The use of electric vehicles is still seen as an important part of efforts to reduce emissions and improve urban air quality.
The DKI Jakarta Provincial Government hopes that this regulatory adjustment does not diminish public interest in electric vehicles. With targeted policies, the electric vehicle ecosystem in Jakarta is expected to continue growing positively and sustainably.
Furthermore, the DKI Jakarta Provincial Government reaffirms that it will continue to prioritise a pro-people approach. Every policy taken not only considers regulatory compliance aspects but also sustainability, fairness, and the welfare of Jakarta residents.