Expert: Uniform Incentives for EVs Needed Across All Regions

Jakarta (ANTARA) - Automotive industry observer from the Bandung Institute of Technology, Yannes Martinus Pasaribu, stated that a special strategy is needed to sustain the automotive industry in the electrification sector through the uniformisation of incentives across all regions.

“The strategy must include minimum uniform regulations throughout Indonesia, for example, all regions are required to provide at least a 50% tax relief. If not, each region differs and causes confusion,” said Yannes Martinus Pasaribu when contacted by ANTARA in Jakarta on Tuesday.

This uniformisation is in relation to the issuance of Ministry of Trade Regulation (Permendag) No. 11 of 2026, under which electric vehicles are no longer exempt from motor vehicle tax (PKB) and motor vehicle transfer tax (BBNKB).

According to him, with this uniformisation, the automotive industry in the electric vehicle sector can remain viable and provide tangible contributions to economic development in Indonesia.

“Because the regulation has now been issued, in the near future, the DKI Jakarta Government will regulate policies related to electric vehicles in a fair manner,” said DKI Jakarta Governor Pramono Anung Wibowo at the Jakarta Budget Talks event at City Hall, Jakarta, on Friday (17/4).

This means that with the regulation, electric cars are still subject to tax by rule, but the amount of tax paid is not always full and can even be zero rupiah, depending on regional policies.

The imposition of tax is not absolute. The central government still provides room for incentives in the form of exemptions or reductions, as regulated in Article 19.

The growing absorption of EVs in Indonesia each year is due to the numerous reliefs provided by the government.

From the total achieved, electric vehicle sales contributed a market share of 15.9%, or a drastic increase of 15.9% compared to previous years.

Not only fully electric vehicles are receiving attention from Indonesian automotive consumers; the hybrid vehicle segment has also experienced quite positive growth in the first quarter of this year, reaching 16,940 units or growing by 21.3%.

This positive reception is inseparable from the benefits received by EV owners, starting from savings in maintenance costs, exemption from odd-even restrictions, to very affordable tax costs through government programmes.