Jakarta Proposes Review of Electric Vehicle Tax Incentives as 63% of Indonesia's EVs Concentrate in Capital

The Jakarta Regional Revenue Agency (Bapenda) has highlighted the rapid growth of electric vehicles in the capital, which has reached 33 percent as of the second quarter of 2026. The agency is urging the central government to re-evaluate the tax incentive policy for electric vehicles, arguing that the current scheme significantly reduces local tax revenue. According to Bapenda Head Lusiana Herawati, the potential loss from the Motor Vehicle Tax (PKB) and the Motor Vehicle Ownership Transfer Fee (BBNKB) amounts to approximately Rp 2 trillion. She noted that 63 percent of all electric cars in Indonesia are located in Jakarta, and 78 percent of these owners possess the electric vehicle as a second or additional car. Lusiana stated that the policy needs to be reviewed to better reflect the principle of fairness, and the evaluation will be conducted jointly with the central government, as the incentives are part of a national effort to promote environmentally friendly vehicles.