Report to Mr Tito! Electric Vehicle Owners Protest and Demand Repeal of Tax Regulation
Jakarta, CNBC Indonesia - The government’s policy opening the door to reductions or withdrawal of electric vehicle incentives has drawn rejection from user communities. EVOLVE (EV Omoda Elevate), which represents owners of Omoda E5 electric cars, has expressed strong objections to the issuance of a new regulation deemed to disrupt the national energy transition direction.
The community, registered as a member of the Indonesian Motor Association (IMI), views the latest regulation as sending a signal contrary to the commitment to developing zero-emission vehicles in Indonesia.
For information, the government through the Ministry of Home Affairs (Kemendagri) has recently issued a new regulation that will impose taxes on electric vehicles in Indonesia. Namely, Minister of Home Affairs Regulation Number 11 of 2026 on the Basis for Imposition of Motor Vehicle Tax, BBNKB, and Heavy Equipment Tax (Permendagri No 11/2026). In this new regulation, electric vehicles are not mentioned as objects exempted from PKB and BBNKB. Thus, battery-based cars or electric vehicles may be subject to Motor Vehicle Tax (PKB) and Motor Vehicle Ownership Transfer Fee (BBNKB).
Permendagri No 11/2026 has been signed by Interior Minister Tito Karnavian and takes effect upon promulgation, namely 1 April 2026.
“With this, we convey rejection, condemnation, and deep concern over the issuance of the regulation within the scope of government policy that leads to the reduction and/or withdrawal of incentives for Battery-Based Electric Motor Vehicles (KBLBB), as stipulated in the Republic of Indonesia Minister of Home Affairs Regulation Number 11 of 2026,” wrote EVOLVE in its statement on Wednesday (22/4/2026).
The policy is seen as giving local governments the authority to no longer provide various electric vehicle incentives that previously applied. This situation is said to risk reducing public interest amid unstable global energy prices.
“Local governments have the authority to no longer provide incentives that previously applied to electric vehicles, which is a step backward and inconsistency in the government’s commitment to building a zero-emission vehicle climate,” the statement continued.
Amid efforts to reduce the energy subsidy burden, user communities believe electric vehicles should instead accelerate their adoption, not be slowed by unsupportive fiscal policies.
“In a situation like this, acceleration of electric vehicle use should be intensified to reduce the state budget burden in providing fuel subsidies,” wrote EVOLVE.
From the industry perspective, the momentum for electric vehicle growth is still in its early stages. Therefore, the continuity of incentives is considered crucial to maintain market attractiveness while encouraging ecosystem formation.
“Stopping incentives at this phase will directly impact the hindered formation of the zero-emission vehicle ecosystem, reduce investor confidence, slow market penetration, and weaken Indonesia’s position in global competition,” wrote EVOLVE.
Direct impacts on consumers are also highlighted, particularly regarding the potential increase in electric vehicle ownership costs.
“The withdrawal of electric vehicle incentives directly affects consumers… increasing the costs that must be incurred for Motor Vehicle Tax (PKB) and Motor Vehicle Ownership Transfer Fee (BBNKB) payments,” wrote EVOLVE.
Moreover, the policy change deemed sudden is said to be able to damage public trust in the overall direction of government policy.
“Sudden policy changes can create uncertainty… and weaken the credibility of public policy itself,” it continued.
On the other hand, demands are also directed directly to the central and local governments to evaluate or even revoke the regulation.
“We firmly urge the Government, particularly the Minister of Home Affairs, to immediately revoke the regulation, or at the very least, make changes to the provisions that impact the withdrawal of electric vehicle incentives,” EVOLVE asserted.
The community hopes the government can formulate more measured and transparent policies, including a clear incentive roadmap to avoid market disruptions.
“The government also needs to prepare a clear, phased, and transparent incentive transition roadmap so that all stakeholders can make more planned adjustments,” they wrote.