Incentive Scheme for Battery-Powered Electric Vehicles Revised

Following the enactment of Law No. 1 of 2022 on Fiscal Relations Between the Central Government and Regional Governments (“ Law 1/2022 ”), which clarifies conditions relating to the imposition of Motor-Vehicle Tax (Pajak Kendaraan Bermotor– “ PKB ”), Motor-Vehicle Title Transfer Duty (Bea Balik Nama Kendaraan Bermotor– “ BBNKB ”) and Heavy Equipment Tax (Pajak Alat Berat– “ PAB ”), the Minister of Home Affairs (“ Minister ”) has now issued Regulation No. 11 of 2026 on the Tax Base for Motor-Vehicle Tax, Motor-Vehicle Title Transfer Duty and Heavy Equipment Tax (“ Regulation 11/2026 ”). ^[1] The enactment of Regulation 11/2026 on 1 April 2026 resulted in the simultaneous repeal and replacement of Regulation of the Minister No. 7 of 2025 (“ Regulation 7/2025 ”). ^[2]