Jakarta Flags Rp 2 Trillion Revenue Loss, Urges Review of Electric Vehicle Tax Exemptions

The DKI Jakarta Provincial Government has recorded a potential revenue loss reaching approximately Rp 2 trillion up to the second quarter of 2026. This loss stems from the zero percent tax policy on electric vehicles in the capital.

Lusiana Herawati, Head of the DKI Jakarta Regional Revenue Agency (Bapenda), stated that electric vehicle growth in Jakarta had reached 33 percent by the second quarter of 2026. This growth coincides with an incentive policy that exempts battery-based electric motor vehicles from the Motor Vehicle Tax (PKB) and the Motor Vehicle Ownership Transfer Fee (BBNKB).

“Electric vehicle growth in Jakarta up to the second quarter has reached 33 percent, so the potential revenue loss from PKB and BBNKB is Rp 515 billion for PKB, covering 109,172 units, and Rp 1.5 trillion for BBNKB, covering 53,419 units,” she said during a press conference at Jakarta City Hall on Wednesday (22/7/2026).

She added that as of June 2026, electric vehicle sales in Jakarta were the highest in Indonesia, with the capital accounting for 63 percent of total national electric vehicle sales. “And 78 percent of these electric car owners possess them as a second vehicle or more, so from a fairness perspective, this policy perhaps needs to be reviewed with the central government,” she said.

The DKI Jakarta Provincial Government is currently maintaining the fiscal incentive of exempting battery-based electric motor vehicles from PKB and BBNKB, in accordance with the Circular Letter of the Minister of Home Affairs Number 900.1.13.1/3764/SJ.