Jakarta Risks Losing Rp 2 Trillion in Electric Vehicle Tax Revenue

Jakarta faces a potential loss of around Rp 2 trillion in revenue from electric vehicle taxes by the second quarter of 2026, according to the Jakarta Revenue Agency (Bapenda). Governor DKI Jakarta Pramono Anung clarified that tax incentives for electric vehicles fall under the central government's purview, and the provincial government will adhere to the established regulations, including exemptions for Motor Vehicle Tax (PKB) and Motor Vehicle Name Transfer Fee (BBNKB).

Pramono suggested that the potential revenue loss might stem from a previous intention to implement taxes for electric vehicles, which was later rescinded. "So, there was a desire to implement the imposition of taxes for electric vehicles, then it was withdrawn again. Perhaps that is what causes the calculations (potential revenue loss of Rp 2 trillion)," he said.

“

So, there was a desire to implement the imposition of taxes for electric vehicles, then it was withdrawn again. Perhaps that is what causes the calculations (potential revenue loss of Rp 2 trillion).

The Governor emphasized that the Jakarta Provincial Government lacks the authority to alter these policies. All regulations concerning fiscal incentives for electric vehicles are determined by the central government, specifically the Ministry of Finance and the Ministry of Home Affairs. "For the DKI Jakarta Government, of course, we will fully implement the rules of the game issued by the central government. Whether there is or not, it is the authority of the central government, the Ministry of Finance and the Ministry of Home Affairs," he stated.

“

For the DKI Jakarta Government, of course, we will fully implement the rules of the game issued by the central government. Whether there is or not, it is the authority of the central government, the Ministry of Finance and the Ministry of Home Affairs.

Previously, Head of Bapenda DKI Jakarta, Lusiana Herawati, reported that electric vehicle growth in Jakarta reached 33% by the second quarter of 2026. This growth has led to a decrease in potential regional revenue due to the PKB and BBNKB tax exemptions. Lusiana noted that the potential revenue loss from PKB alone reached Rp 515 billion from approximately 109,172 electric vehicles. The loss from BBNKB is estimated at Rp 1.5 trillion for about 53,419 vehicles.

Lusiana added that Jakarta accounts for the highest electric vehicle sales nationally, with about 63% of Indonesia's electric vehicle sales recorded there. She also mentioned that 78% of electric car owners in Jakarta already owned another vehicle previously. Therefore, she suggested that the fiscal incentive policy for electric vehicles needs to be re-evaluated jointly with the central government from the perspective of fairness to beneficiaries. "From the perspective of fairness, this policy indeed needs to be reviewed again with the central government," she said.

“

From the perspective of fairness, this policy indeed needs to be reviewed again with the central government.