1 jam yang lalu
April 23, 2026 | 05:16 pm
TEMPO.CO, Jakarta - Economist from the Institute for Development of Economics and Finance (Indef) Andry Satrio Nugroho believes that Indonesia's electric vehicle tax policy has the potential to hinder the national vehicle electrification program. He stated that the policy is not aligned with the government's efforts to promote energy transition, especially amidst the threat of an oil crisis.
"It seems that there is a lack of clarity from the government regarding this policy because we see the president also pushing for vehicle electrification," Andry said after a discussion at Senayan, Jakarta, on Thursday, April 23, 2026.
Previously, the Ministry of Home Affairs issued Ministerial Regulation No. 11 of 2026, which grants regional governments the authority to impose taxes on electric vehicles. Through this regulation, electric cars and motorcycles are no longer exempt from the Motor Vehicle Tax (PKB) and Motor Vehicle Transfer Fee (BBNKB).
Andry also believes that this regulation contradicts Law Number 1 of 2022 on the Relationship between the Central and Regional Governments (HKPD). In Article 7 of the Law, vehicles that run on renewable energy are exempt from the PKB. Therefore, he urged the government to clarify the legal basis for this policy.
He also reminded regional governments not to rush in establishing derivative regulations, either through regional head regulations or regional regulations. According to him, the potential revenue from electric vehicle taxes is relatively small.
"Because, fundamentally, it will not generate significant income even if the tax is still imposed," he said.
The General Secretary of the Indonesian Electric Vehicle Association (Periklindo) Tenggono Chuandra Phoa believes that fully handing over tax authority to regional governments risks creating policy disparities between regions. This condition can create uncertainty for consumers and industry players.
According to Tenggono, the risk is even greater because the penetration of electric vehicles in Indonesia is still below 5 percent of the total national automotive market, making it highly sensitive to price changes. "This positive momentum needs to be maintained through consistent and coordinated policies," he said.
Based on Periklindo's internal study, an increase in regional taxes has the potential to reduce the competitiveness of electric vehicles compared to conventional vehicles, obstruct new investments in the electric vehicle and battery sector, and disrupt the national decarbonization targets. In addition, this policy is also considered to create uncertainty in the national industrial distribution strategy.
However, the electric vehicle industry in Indonesia has shown significant progress over the past two years. This is marked by the entry of over 15 new brands, the availability of over 3,500 public electric vehicle charging stations, and global investments surpassing US$5 billion. "This development is also accompanied by job creation in the manufacturing sector and local components," Tenggono said.
Read: Hyundai Seeks Clarity on EV Taxes Across Indonesia
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