Jakarta to Begin Taxing Electric Vehicles
Jakarta. The Jakarta provincial government is drafting new regulations that will impose taxes on electric vehicles after the central government issued guidelines for regional administrations on EV taxation.
Previously, electric vehicles were exempt from the annual motor vehicle tax and vehicle ownership transfer tax. Buyers of new EVs also received significant value-added tax incentives.
However, following the issuance of Home Affairs Minister Regulation No. 11/2026, electric vehicles no longer automatically qualify for tax incentives.
Instead, the regulation grants regional governments the authority to offer exemptions or tax reductions for electric vehicles based on their respective fiscal capacity.
“Now that the Home Affairs Minister regulation has been issued, the Jakarta administration will soon formulate fair policies related to electric vehicles,” Jakarta Governor Pramono Anung said recently.
Future EV tax policies will not be uniform across Indonesia, with tax rates and incentives expected to vary depending on decisions made by individual local governments.
A 2023 Jakarta gubernatorial regulation, enacted before Pramono took office, set the tax rate for electric vehicles at zero percent.
Previously, vehicle taxes in Indonesia were calculated based on a vehicle’s base price and factors reflecting its contribution to road damage and environmental pollution.
Under the new regulation, however, environmental pollution is no longer explicitly mentioned, meaning electric vehicles and gasoline-powered cars could be treated similarly for taxation purposes.
Tags: Keywords:Related Articles
Jakarta Prepares Free Transport, Health Services for 37,000 JRF Runners
Jakarta offers free transport and medical support for 37,000 runners at the Jakarta Running Festival on Oct. 24-25, amid road closures.Jakarta Plans November Job Fair Dedicated to People with Disabilities
Jakarta plans a dedicated job fair for people with disabilities in November, separate from its October expo offering 12,000 vacancies.Jakarta Spends Just 54.39% of 2026 Budget by End of September
Jakarta spent just 54.39% of its 2026 budget by September, prompting calls to accelerate programs and avoid a year-end spending rush.'Can't Stand the Heat': Jakarta Plans Weather Modification Ahead of Running Festival, Ye Concert
The Jakarta Running Festival (JRF), scheduled for Oct. 24–25, is expected to bring large numbers of runners onto the capital's streets.Jakarta Seeks to Become Southeast Asian Film Production Hub
Jakarta aims to become a Southeast Asian film hub by attracting foreign productions and expanding global partnerships.Jakarta Governor Urges Peaceful Protests on Prabowo’s Second Anniversary
Jakarta deploys 9,505 personnel for Prabowo anniversary protests as Governor Pramono calls for peaceful demonstrations and public order.Jakarta Outranks Amsterdam in Global Public Transport Survey
Jakarta climbs two places to 15th in Time Out's 2026 public transport survey, with its governor citing better network integration.Jakarta Prepares 367 Health Facilities as Haze Reaches the Capital
Jakarta prepares 367 health facilities to treat potential haze-related illnesses after smoke from Sumatra and Kalimantan crosses the region.Jakarta Expands Flood Prevention With New Water Storage Ponds
Jakarta opens two East Jakarta water storage ponds as it expands flood prevention efforts through reservoirs and river normalization.An-Nur Floating Mosque Opens at Ancol as New Jakarta Attraction
Jakarta Governor Pramono Anung inaugurates the An-Nur Floating Mosque at Ancol, hoping it will boost religious tourism.The Latest
Ye Concert, Other Events to Draw 130,000 to GBK, Here’s What to Know
Around 130,000 visitors are expected at Jakarta’s GBK on Saturday as Ye’s concert and several major events take place.Indonesia Allocates Rp 722 Billion for Year-End Flight Ticket Tax Relief
Indonesia allocates Rp 722 billion to cover domestic flight ticket VAT during the 2026/2027 Christmas and New Year holidays.Greece Floats Shipbuilding Partnership with Indonesia
Greece says that it possesses “extensive expertise” as it woos Indonesia in shipbuilding partnership.Indonesian Stocks Rally 4.9%, but Foreign Investors Keep Selling
Indonesia’s JCI rose 4.9% last week, but foreign selling and MSCI downgrade risks continue to cloud the market outlook.Ye Concert in Jakarta to Deploy 2,000 Security Personnel
More than 2,000 personnel will secure Ye’s Jakarta concert on Saturday, as organizers urge fans to use public transport.Most Popular
