Electric-Car Incentives and Taxes in Indonesia
If you are considering buying an electric car in Indonesia, one of the attractions is lighter incentives and taxes than a petrol car. But the picture is often muddled, because two different things get mixed together: a STRUCTURAL national incentive that is already in force and tends to last (chiefly 0% PPnBM for battery electric cars), and PROGRAM or REGIONAL incentives that are time-limited or differ between areas (such as the PPN DTP scheme and per-region annual vehicle-tax relief). This guide separates the two: it focuses on the incentives in force in 2026, explains the status of the newly announced but not-yet-certain PPN DTP, and notes the old import incentives that ended on 31 December 2025. Because this concerns taxes and policy that can change, every figure here is dated and sourced, and this is general information, not legal or tax advice. Check the official sources and your dealer before making a decision.
By mht-dev, Frontend Engineer & Creator
A frontend engineer who bought a first electric car in March 2026 and built EV Charge Calculator while working out the real cost of charging it, writing every guide from an everyday new EV owner's perspective.
What incentives apply to electric cars in Indonesia
Electric-car incentives in Indonesia are best read in two groups. The first group is STRUCTURAL national incentives, meaning tax reliefs embedded in national rules that tend to persist year to year; the main one is 0% PPnBM for BEVs. The second group is PROGRAM or REGIONAL incentives, meaning schemes set for a particular period or set region by region that can end, change, or differ between areas, such as the PPN DTP scheme and the motor-vehicle tax (PKB) relief that is now decided regionally. Telling the two apart matters, because a headline saying a particular incentive has ended or changed does not necessarily mean all incentives are gone.
The next section covers the incentives in force in 2026 first, because 0% PPnBM is the most dependable national basis when working out total cost of ownership. Only after that do we look at the status of the newly announced 2026 PPN DTP, which must be read carefully because it is not yet certain. Throughout this guide, every claim is paired with a source and a date, and you should still confirm with an official source or your dealer because the details and amounts can vary case by case and region by region.
Incentives in force: 0% PPnBM and regional tax relief
The most important structural incentive is 0% PPnBM for battery electric cars (BEVs). The luxury-goods sales tax (PPnBM) normally charged on cars is set to zero for BEVs, so the selling price is lower than a comparable combustion-engine car (source: medcom.id, uzone.id, auto2000.co.id, as of 2026). This is a national relief embedded on the purchase side and does not depend on a single time-bound program scheme.
On the annual-tax side, the picture changed in 2026. Since Permendagri 11/2026 took effect in April 2026 (replacing Permendagri 8/2024), battery electric cars are no longer automatically tax-free nationwide; a BEV is now an object of motor-vehicle tax (PKB) and the transfer-of-ownership fee (BBNKB), with PKB at roughly 2% of the taxable value (NJKB), but regional governments are authorised to grant relief or exemption as a local incentive (Article 19). In practice many regions still set PKB very low or at 0%; for example DKI Jakarta keeps BEV PKB at 0% through a provincial rule (source: kontan.co.id, muc.co.id, news.ddtc.co.id on Permendagri 11/2026, as of 2026). Because the amounts are now set region by region, the annual tax on an electric car is no longer uniform, so confirm with your local Samsat office or dealer.
Because these incentives are partly based on a stable national rule (0% PPnBM for BEVs) and partly on regional incentives that can differ between areas (PKB and BBNKB relief), treat 0% PPnBM as the most dependable basis when estimating the total cost of owning an electric car in 2026, and check the PKB rate in your own region separately. Because regional arrangements can differ and rules can be revised, treat the figures here as a general picture and check the latest official source before relying on them.
The status of the 2026 PPN DTP
The old PPN DTP scheme has ended. The government-borne VAT incentive that cut VAT from 11% to 1% for locally assembled cars (CKD), plus the import-duty and PPnBM exemptions for fully built imports (CBU), ended on 31 December 2025 (source: otomotif.kompas.com, 30 December 2025). This is why headlines appeared in early 2026 seeming to say electric-car incentives had disappeared; what ended was this import-program scheme, not the 0% PPnBM discussed above.
A new PPN DTP scheme has been ANNOUNCED for 2026, but it is not yet certain to apply. According to reporting, the new scheme gives 100% PPN DTP for nickel-battery (NMC) BEVs and 40% for non-nickel BEVs, with hybrid cars EXCLUDED, and is targeted to begin around mid-2026; its schedule even slipped by about a month from the original early-June 2026 plan (source: news.ddtc.co.id, 8 May 2026, money.kompas.com, 8 May 2026, cnbcindonesia.com, 26 May 2026). It must be stressed: this is still ANNOUNCED, not confirmed in force, because the national budget is still being finalized. Do not make it the basis of a purchase decision until it is official; check the latest official source before relying on it.
The safest way to read this status is: rely on the nationally-set 0% PPnBM, check the PKB rate in your own region separately (many regions grant relief down to 0% as a local incentive), treat the new PPN DTP scheme as a possible additional benefit that is not yet certain, and remember that the old import scheme ended on 31 December 2025. Reading it this way keeps your cost estimate accurate whether or not the new scheme takes effect. Again, this is general information, not legal or tax advice.
Save on running cost, not just tax
Beyond purchase and annual taxes, electric cars also save on day-to-day running cost, and there is one relevant operational incentive: PLN gives a 30% discount for charging at night, namely 22:00 to 05:00, which fits the overnight home-charging pattern (source: web.pln.co.id, bydindonesia.co.id, as of 2026). Like other program schemes, this off-peak discount window runs until 30 June 2026, so it is time-limited; check the latest in PLN Mobile. To estimate the charging cost of your own car, use the calculator on this site, which is for electric cars.
To compare the cost of charging at home with a public station in detail, read the cost guide at /id/guide/biaya-cas-rumah-vs-spklu. Note that this guide covers incentives for electric cars; there is a separate subsidy for electric MOTORCYCLES, namely the Rp 5 million per-unit purchase subsidy for electric motorcycles, which is a different vehicle class and is covered briefly at /id/guide/motor-listrik-vs-motor-bensin. That motorcycle subsidy is not repeated here because its target and mechanism differ from the car incentives.
Electricity rate and sources
| Tariff | Rate per kWh | Source | As of |
|---|---|---|---|
| PLN Rumah Tangga ≥3.500 VA | Rp 1.699,53 | PLN/ESDM tariff-adjustment publication | 2026-05-24 |
| SPKLU DC (Publik) | Rp 2.466,00 | PLN SPKLU public fast-charge tariff (Permen ESDM ceiling) | 2026-05-24 |
Rates updated 2026-05-24
Frequently asked questions
Are there still electric-car incentives in 2026?
- Yes. The main structural incentive is still in force in Indonesia in 2026, namely 0% PPnBM for BEVs (source: medcom.id, uzone.id, auto2000.co.id, as of 2026). For annual tax, since Permendagri 11/2026 (April 2026) electric cars are objects of PKB and BBNKB, but many regions grant relief down to 0% as a local incentive, for example DKI Jakarta (source: muc.co.id, news.ddtc.co.id, as of 2026). In addition, a new PPN DTP scheme has been announced for 2026 but is not yet certain to apply because the budget is still being finalized and its schedule has slipped. Rely on the structural incentive, check the PKB rate in your region, and check the latest official source. This is general information, not legal or tax advice.
How much is the 2026 PPN DTP for electric cars?
- According to reporting, the new PPN DTP scheme announced for 2026 gives 100% for nickel-battery (NMC) BEVs and 40% for non-nickel BEVs, with hybrids excluded, targeted to begin around mid-2026 and slipped by about a month from the original June plan (source: news.ddtc.co.id, 8 May 2026, money.kompas.com, 8 May 2026, cnbcindonesia.com, 26 May 2026). But this scheme is still announced and not yet certain to apply, because the national budget is still being finalized. Do not make it the basis of a purchase decision until it is official; check the latest official source before relying on it.
Are electric cars exempt from the annual vehicle tax (PKB)?
- Not automatically nationwide anymore. Since Permendagri 11/2026 took effect in April 2026 (replacing Permendagri 8/2024), battery electric cars are objects of PKB and BBNKB, but regional governments may grant relief or exemption as a local incentive; many regions still set PKB very low or at 0%, for example DKI Jakarta, which keeps BEV PKB at 0% through a provincial rule (source: kontan.co.id, muc.co.id, news.ddtc.co.id, as of 2026). Because the amounts are now set region by region, confirm with your local Samsat office or dealer. This is general information, not legal or tax advice.
Do hybrid cars get the same incentives?
- Not for the newly announced PPN DTP scheme: that scheme is specifically for battery electric cars (BEVs), and hybrids are excluded (source: news.ddtc.co.id, 8 May 2026, money.kompas.com, 8 May 2026). The structural incentive of 0% PPnBM is also aimed at BEVs, not hybrids. So this guide covers fully electric cars, not hybrids. Because policy can change, check the latest official source before relying on it. This is general information, not legal or tax advice.