Interior Minister Tito Orders Governors to Exempt Electric Vehicle Taxes

Interior Minister Tito Karnavian has ordered all governors to exempt taxes for owners of electric vehicles. The instruction is outlined in Circular Letter No. 900.1.13.1/3764/SJ on the Provision of Fiscal Incentives in the Form of Exemption from Motor Vehicle Tax and Motor Vehicle Name Transfer Duty (BBNKB) for Battery-Based Electric Motor Vehicles. “The provision of incentives for exemption or reduction of regional taxes in the form of PKB and BBNKB for Battery-Based Electric Motor Vehicles, including motor vehicles that have been converted from fossil fuels to Battery-Based Electric Motor Vehicles,” Tito wrote in the circular, quoted on Thursday, 23 April 2026. The exemption or reduction of regional taxes covers Motor Vehicle Tax (PKB) and Motor Vehicle Name Transfer Duty (BBNKB). Tito stated that this tax exemption applies to vehicles manufactured in 2026 and before 2026. This has been regulated in Article 19 of Minister of Home Affairs Regulation No. 11 of 2026. “In its implementation, governors are also requested to report the provision of fiscal incentives by attaching the Governor’s Decision to the Ministry of Home Affairs (Kemendagri) through the Directorate General of Regional Financial Training (Ditjen Bina Keuangan Daerah) at the latest on 31 May 2026,” he explained.