April 26, 2026 | 07:43 am
TEMPO.CO, Jakarta - The Government of Banten Province in Indonesia stated its support for the acceleration of the national clean energy transition by following the central government's policy on the exemption of Electric Battery-based Motorized Vehicles Tax.
Banten Deputy Governor, Achmad Dimyati Natakusumah, stated that the region would adjust its fiscal regulations following the issuance of the Circular Letter of the Minister of Home Affairs (Mendagri) Number 900.1.13.1/3764/SJ, which grants the authority to provide the tax incentive. "For electric vehicles, we will follow the central regulations. If the central government has regulated it, we will follow," said Dimyati, as quoted by Antara on Sunday, April 26, 2026.
The policy, signed on April 22, 2026, urges local governments to exempt Motor Vehicle Tax (PKB) and Motor Vehicle Transfer Fee (BBNKB) for electric vehicle owners.
Despite fully supporting the environmental mission, Dimyati noted fiscal challenges. He mentioned that the increasing trend in electric vehicle usage could potentially affect the Original Regional Revenue (PAD) structure from the conventional vehicle tax sector. "This indeed has two sides. We want to be environmentally friendly, but on the other hand, there is an impact on the PAD. This needs to be balanced," he said.
Dimyati stated that the issue of potential decline in regional revenue had been conveyed in a coordination forum with the Coordinating Ministry and Mendagri as a consideration for future policies.
Nevertheless, the Banten Provincial Government ensured that the implementation in the field would remain in line with the latest regulations set by the central government to promote an eco-friendly vehicle ecosystem in the Banten region. "In principle, we follow the central regulations. For now, we implement it according to the existing provisions," said Dimyati.
Previously, the Ministry of Home Affairs requested all regional heads in Indonesia to provide fiscal incentives in the form of exemption of electric vehicle taxes. This instruction was included in the Circular Letter of the Minister of Home Affairs regarding the Fiscal Incentive of Motor Vehicle Tax Exemption and Motor Vehicle Transfer Fee for Electric Battery-based Motorized Vehicles.
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