Indonesia Canceled Full Tax Exemption for EVs, Local Governments to Set Reduction Rates

Published: Apr 29, 2026 09:19

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[Indonesia's New Regulation Cancels Full Tax Exemption for EVs, Allowing Local Governments to Determine Reduction Levels] The Indonesian government, through a new regulation recently implemented by the Ministry of Home Affairs, canceled the full exemption from motor vehicle tax and motor vehicle transfer fees previously enjoyed by battery EVs. According to Minister of Home Affairs Regulation No. 11 of 2026, EVs are no longer automatically exempt from the aforementioned taxes and fees, and instead, local governments will decide whether to grant reductions based on actual conditions.

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