Jakarta, 4 May 2026 – Indonesia’s electric vehicle ambitions are facing a policy test after the government moved to roll back nationwide tax exemptions for EVs, raising concerns that higher ownership costs could slow adoption in Southeast Asia’s largest automotive market.
The policy shift follows the introduction of Home Ministry Regulation No. 11/2026, which makes electric vehicles subject to motor vehicle tax and ownership transfer fees. While regional governments may still introduce their own incentives, the removal of nationwide exemptions could create uneven pricing conditions across provinces and weaken the consistency of Indonesia’s EV adoption roadmap.
Unlock the Full Article
This article is exclusive to The Ledger Asia Subsribers / PAID members.
Already have an account? Log in here
