Tito Karnavian Instructs Tax Exemption for Electric Vehicles

JAKARTA, KOMPAS.com - The Minister of Home Affairs, Tito Karnavian, has instructed all governors to exempt electric vehicles from taxes. The instruction is outlined in Circular Letter Number 900.1.13.1/3764/SJ on the Provision of Fiscal Incentives in the Form of Exemption from Motor Vehicle Tax and Motor Vehicle Transfer Fees for Battery-Based Electric Motor Vehicles. Tito explained that the incentives provided consist of exemptions or reductions in regional taxes, including Motor Vehicle Tax (PKB) and Motor Vehicle Transfer Fees (BBNKB). In its implementation, Tito also requested that governors report the provision of fiscal incentives by attaching the Governor’s Decision to the Ministry of Home Affairs (Kemendagri) through the Directorate General of Regional Financial Development (Ditjen Bina Keuangan Daerah) no later than 31 May 2026. Tito also stated that this policy aims to increase energy efficiency, energy resilience, energy conservation in the transport sector, as well as to realise clean energy and maintain environmentally friendly air quality. “This instruction is also issued considering the global economic dynamics that cause instability in the availability and price of energy (oil and gas), thus impacting the domestic economic conditions,” Tito said.