Eyeing Rp 2 Trillion, Jakarta Legislators Endorse Electric Vehicle Tax Study

The Jakarta Legislative Council (DPRD) has expressed its support for the Jakarta government's plan to review and potentially adjust the Motor Vehicle Tax (PKB) and Motor Vehicle Transfer Fee (BBNKB) for electric vehicles (EVs).

I expect this matter to be discussed in much greater depth

DPRD Chairman Suhud Alynudin stated that the proposal to recalibrate EV taxes stems from aspirations within the Budget Committee (Banggar).

He pointed out that as the number of electric vehicles continues to rise, they increasingly utilize the city's road infrastructure—which is funded and maintained by the Regional Budget (APBD).

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"Consequently, several members have proposed that electric vehicles should now be subject to taxes," he noted, at City Hall, Friday (8/7).

Suhud explained that discussions regarding electric vehicle taxes will be conducted by Commission C alongside relevant Regional Government Agencies (OPD).

This follows the deliberation of the 2026 Revised Budgetary Guidelines (KUA-PPAS), which saw a decrease in projected funding. Specifically, Jakarta's revised 2026 budget has been trimmed from Rp 81.3 trillion to Rp 79.58 trillion.

"I expect this matter to be discussed in much greater depth during upcoming consultation meetings, particularly within Commission C," he explained.

Meanwhile, Jakarta DPRD Commission C Member, Lukmanul Hakim added the council will urge the Jakarta government to propose electric vehicle (EV) tax adjustment regulations to the Ministry of Home (Kemendagri).

He emphasized that such regulations are essential to provide a solid legal foundation for local governments to optimize tax revenue from the EV sector.

"The aim is for the Governor to establish a regulatory framework or formally coordinate with the Ministry, so that we can maximize our revenue from electric vehicle taxes," he explained.

Lukman emphasized that his party fully supports the Jakarta government's efforts to optimize tax revenue from electric vehicles, noting that the potential Local Revenue (PAD) from this sector is estimated to reach Rp 2 trillion.

"We absolutely support this move. The revenue is vital for funding public subsidies and essential services, while also solidifying Jakarta’s position as a more resilient and robust global city," he stated.