New Rules! Tax Exemptions for Electric Cars and Motorcycles No Longer Free This Year
The government, through the Ministry of Home Affairs, has issued a new regulation that will impose taxes on electric vehicles in Indonesia. The regulation is Minister of Home Affairs Regulation No. 11 of 2026 on the Basis for Imposing Motor Vehicle Tax, BBNKB, and Heavy Equipment Tax.
In this new regulation, electric vehicles are not mentioned as objects exempted from PKB and BBNKB. Consequently, battery-based cars or electric vehicles may be subject to Motor Vehicle Tax (PKB) and Motor Vehicle Ownership Transfer Tax (BBNKB).
The regulation has been signed by Minister of Home Affairs Tito Karnavian and promulgated on 1 April 2026.
Article 3 paragraph (3) only lists the types of vehicles exempted from PKB objects, such as trains; motor vehicles solely used for national defence and security; motor vehicles of embassies, consulates, foreign state representatives on a reciprocal basis, and international institutions granted tax exemptions by the government; renewable energy motor vehicles; and other motor vehicles designated by regional regulations on local taxes and levies.
Meanwhile, in the previous regulation, Minister of Home Affairs Regulation No. 7 of 2025 on the Basis for Imposing Motor Vehicle Tax, BBNKB, and Heavy Equipment Tax for 2025, electric vehicles were specifically exempted from PKB and BBNKB objects.
In the old regulation, it was clear that motor vehicles based on renewable energy, including battery-based, biogas, and solar-powered vehicles, as well as motor vehicles converted from fossil fuels to renewable energy-based, were exempted from PKB and BBNKB objects.
Jakarta to Collect Tax on Electric Vehicles
The Jakarta Regional Revenue Agency (Bapenda) acknowledges that Battery-Based Electric Motor Vehicles (KBLBB) are no longer automatically exempted from local taxes following the new regulation from the Minister of Home Affairs.
This change means that every transfer, ownership, and/or control of battery-based electric vehicles is now subject to PKB and BBNKB. The DKI Jakarta Provincial Government, through the DKI Jakarta Provincial Regional Revenue Agency, is preparing regulations to anticipate the implementation of this Minister of Home Affairs Regulation in Jakarta.
The DKI Jakarta Provincial Government understands that the public has contributed to supporting the clean energy transition through the use of electric vehicles.
“Therefore, although there is a policy adjustment at the national level, the local government is committed to prioritising public interests and ensuring that electric vehicles remain an affordable choice,” stated Bapenda.
Bapenda explained that the DKI Jakarta Provincial Government is preparing an optimal fiscal incentive scheme, utilising the policy space provided in the latest Minister of Home Affairs Regulation. These incentives are designed to reduce the tax burden borne by the public, without contradicting applicable laws and regulations.
This step reflects a balanced approach between compliance with national regulations and protection of public purchasing power.
“The DKI Jakarta Provincial Government not only acts as a policy implementer but also as a facilitator ensuring that the public continues to receive tangible benefits,” Bapenda wrote in its official statement.
In addition, the designed incentive policy aligns with Jakarta’s vision as a sustainable city. The use of electric vehicles remains a priority in efforts to reduce emissions and improve air quality in Jakarta.
According to Bapenda, the DKI Jakarta Provincial Government wants to ensure that this regulatory change does not diminish public interest in electric vehicles. On the contrary, with targeted incentives, the electric vehicle ecosystem in Jakarta is expected to continue growing positively.
“With a spirit of service and protection, the DKI Jakarta Provincial Government reaffirms its commitment to remaining pro-public. Every policy taken is not only oriented towards regulatory compliance but also towards sustainability, fairness, and the welfare of Jakarta’s residents,” Bapenda explained.