Hyundai urges clarity on EV taxes amid regional policy shifts
Tempo, 23 Apr '26
Hyundai Motor Indonesia emphasised the need for regulatory clarity in electric vehicle (EV) taxation across the region, following the implementation of Minister of Home Affairs Regulation No. 11 of 2026 concerning the basis for motor vehicle tax imposition, motor vehicle transfer fees, and heavy equipment tax.
Under the new regulation, electric vehicles are no longer exempt from taxes, with each local government authorised to determine the applicable tax rates.
In response to the Jakarta Provincial Government plan to introduce regulations on EV taxation, Chief Operating Officer Fransiscus Soerjopranoto referred to the need for certainty in tax and incentive policies across regions.
"Of course, we respect the authority of local governments in determining incentive schemes that are aligned with their respective dynamics. We hope for regulations that provide confidence to consumers," he said on April 22nd, 2026.
Fransiscus stated that regulatory certainty regarding EV taxes and incentives is a factor in the transition to electric mobility. Given that regional conditions and priorities vary, the company acknowledged that tax structures and fiscal incentives for EV adoption may differ across regions.
However, the company stated that variations in tax and incentive frameworks should be balanced with measures to maintain the competitiveness of electric vehicles. It further added that non-fiscal policies could also contribute to EV adoption.
"The differences in fiscal incentives between regions can also be balanced with non-fiscal measures, ranging from the development of charging infrastructure to various accessibility facilities for EV users, which can also play a significant role in shaping consumer decisions," Fransiscus stated.
The company further stated that a combination of fiscal and non-fiscal policies could be implemented to support the adoption of electric vehicles.