Government ends EV tax exemption under new vehicle tax rules
Kompas Otomotif, 17 Apr '26
The Indonesian government has revised the vehicle tax imposition framework through Minister of Home Affairs Regulation (Permendagri) No. 11 of 2026, which governs the basis for imposing Motor Vehicle Tax (PKB), Motor Vehicle Transfer Fee (BBNKB), and Heavy Equipment Tax.
The regulation serves as a reference for regional governments in determining vehicle tax amounts, including those applicable to battery-based electric vehicles (BEVs).
Under this regulation, electric vehicles are no longer exempt from PKB and BBNKB. Ownership and transfer remain subject to the taxation framework, meaning electric cars continue to be taxable under applicable laws. However, the payable tax amount may vary and can be reduced or set to zero, depending on regional policies.
The tax imposition is not fixed. The central government allows for incentives, including exemptions or reductions, as outlined in Article 19. The extent of these incentives is determined by individual regional governments. As a result, electric vehicle tax policies may differ across regions rather than following a uniform national structure.
For example, in DKI Jakarta, Governor Regulation No. 38 of 2023, which refers to Minister of Home Affairs Regulation No. 6 of 2023, stipulates that electric vehicles are subject to PKB at 0% of the taxable base and are exempt from BBNKB. Such a framework remains permissible but is not mandatory nationwide, as implementation depends on regional authorities.
Minister of Home Affairs Regulation No. 11 of 2026 also specifies that PKB is calculated based on two primary components: the Motor Vehicle Sales Value (NJKB) and a coefficient weight, as stated in Article 14. This coefficient reflects the extent of road impact and/or environmental effects associated with vehicle use and is used to determine the tax amount.
The regulatory appendix does not distinguish between electric vehicles and those powered by internal combustion engines. This indicates that both categories are treated equally in terms of the tax base. For instance, the BYD M6 has a coefficient of 1.050, which is the same as that of the Daihatsu Xenia.
This indicates that the fundamental calculation of electric vehicle tax is not differentiated from that of conventional vehicles. The regulation was signed by Tito Karnavian and came into effect on April 1st, 2026.
