This is the Reason Electric Vehicles in Jakarta Remain Tax-Free and Exempt from Odd-Even Rules

The Jakarta Provincial Government (Pemprov DKI Jakarta) continues to exempt electric vehicles from taxes and grant exemptions from the odd-even rule. This policy is implemented to encourage the transition to environmentally friendly vehicles while curbing air pollution in Jakarta. Head of the Jakarta Regional Revenue Agency (Bapenda), Lusiana Herawati, stated that incentives in the form of exemptions from Motor Vehicle Tax (PKB) and Motor Vehicle Ownership Transfer Fee (BBNKB) are in line with central government policies. “Following the issuance of the Minister of Home Affairs’ Circular Letter Number 900.1.13.1/3764/SJ on fiscal incentives in the form of PKB and BBNKB exemptions for battery-based electric motor vehicles, the policy of the DKI Jakarta Provincial Government aligns with those provisions,” Lusiana said in her statement on Tuesday (5/5/2026). She explained that these incentives aim to accelerate the adoption of electric vehicles among the public. In addition to tax exemptions, electric vehicles remain exempt from Jakarta’s odd-even rule. “This policy is part of efforts to promote the use of more environmentally friendly vehicles, in line with commitments to reduce emissions and strengthen a sustainable urban transportation system,” said Syafrin. According to him, the use of electric vehicles is expected to help reduce air pollution, which remains a problem in Jakarta. Nevertheless, the public is still urged to prioritise public transportation in their daily activities. This incentive policy is also linked to the issuance of Minister of Home Affairs Regulation Number 11 of 2026, which regulates the basis for imposing PKB, BBNKB, and heavy equipment taxes nationally. Under that regulation, battery-based electric vehicles are no longer automatically excluded as objects of regional taxes. This means that the provision of incentives now depends on the policies of each regional government. Electric vehicles valued up to Rp 300 million receive a 75 per cent incentive, vehicles valued Rp 300-500 million receive 65 per cent, vehicles valued Rp 500-700 million receive 50 per cent, and vehicles valued above Rp 700 million receive 25 per cent. However, this plan was adjusted following directives from the central government through a circular from the Ministry of Home Affairs requesting full tax exemptions for electric vehicles. “This was initially permitted, then revised. Therefore, the DKI Jakarta Government must also adjust accordingly,” said Jakarta Governor Pramono Anung. With this policy, the DKI Jakarta Provincial Government hopes that the use of electric vehicles will expand further, while supporting a cleaner and more sustainable transportation system in the capital.