This is the Reason the Jakarta Provincial Government Continues to Exempt Electric Vehicle Taxes, What About Odd-Even Rules?

The Jakarta Provincial Government (Pemprov) has stated that it will continue to uphold fiscal incentives in the form of exemptions from Motor Vehicle Tax (PKB) and Motor Vehicle Transfer Fee (BBNKB) for battery-based electric motor vehicles. This policy aligns with Circular Letter No. 900.1.13.1/3764/SJ from the Minister of Home Affairs. Jakarta Governor Pramono Anung said that the electric vehicle tax exemption policy is a directive from the central government. Therefore, the tax on electric vehicles, which was previously going to be imposed, has now been cancelled in accordance with the central government’s policy. “Regarding electric cars, at that time it was allowed (to collect tax), then it was revised, so the DKI Jakarta Government must also adjust to that,” he said in East Jakarta on Tuesday (5/5/2026). He added that the policy is implemented to encourage more people to switch to using electric vehicles. In this way, pollution in Jakarta can be minimised. “Because the policy is like that and the DKI Jakarta Government is serious about reducing pollution, the first policy is that since there is no tax for electric cars, we do not impose it,” he said. Previously, the Head of the Jakarta Provincial Revenue Agency (Bapenda), Lusiana Herawati, explained that the fiscal incentive policy for electric vehicles in Jakarta still refers to the direction of the central government’s policy. She stated that the Jakarta Provincial Government will remain consistent in supporting the development of environmentally friendly vehicles and the acceleration of clean energy transitions. “After the issuance of Circular Letter No. 900.1.13.1/3764/SJ from the Minister of Home Affairs regarding the provision of fiscal incentives in the form of exemptions from PKB and BBNKB for battery-based electric motor vehicles, the policy of the DKI Jakarta Provincial Government is in line with those provisions, namely continuing to provide incentives in the form of exemptions from PKB and BBNKB for battery-based electric vehicles,” she said. Lusiana added that the policy is part of support for the ecosystem of renewable energy-based vehicles. On the other hand, the policy is also an effort to encourage the use of more environmentally friendly vehicles in Jakarta.