Uncertainty over Electric Vehicle Taxes Clouds Market Confidence

JAKARTA, KOMPAS.com - Electric vehicle tax policies are once again in the spotlight following the emergence of two regulations that are seen as contradictory. On one hand, Ministry of Home Affairs Regulation Number 11 of 2026 opens the door for local governments to increase revenue through electric vehicle taxes. On the other hand, the latest circular requests governors to exempt such taxes. This situation is seen as causing confusion, not only at the local government level but also for industry players and consumers. The misalignment of policy directions makes on-the-ground implementation uncertain, particularly in determining the tax scheme to be applied. “When we see that the Ministry of Home Affairs Regulation provides leeway to increase regional revenue through electric vehicle taxes, the Minister of Home Affairs’ circular instead instructs governors to exempt electric vehicle taxes,” he told Kompas.com on Friday (24/4/2026). According to him, this step actually enlarges the uncertainty for stakeholders. Moreover, the exemption of electric vehicle taxes through the circular is not accompanied by clear certainty on the implementation timeline. “It should be remembered that exempting electric vehicle taxes is unknown until when. So, in this case, the best option is to revise the Ministry of Home Affairs Regulation 11-2026,” said Andry. He assessed that policies in the form of circulars are only temporary or “buying time” amid public pressure. Without revising the main regulation, the potential for uncertainty will continue and impact market confidence. Meanwhile, automotive observer Hendra Noor Saleh views this polemic from a different perspective. He admitted not knowing the exact background behind the emergence of the two policies in close proximity, but chose to look at the end result. “So I don’t understand the background why there are two rules coming out close together and it seems like a correction. But I just look at the end, that the final decision is to ask governors to exempt electric vehicle taxes,” he said. According to Hendra, this decision remains in line with the government’s broader policy direction to encourage the use of electric vehicles. He assessed that the tax exemption actually strengthens the signal of support for the energy transition, amid fluctuating fuel prices.