JAKARTA - The discourse of the DKI Jakarta Provincial Government (Pemprov) to stop the tax incentive for electric vehicles has garnered criticism. The Committee for the Elimination of Subsidized Gasoline (KPBB) assessed that this step has the potential to be a setback in efforts to reduce air pollution and greenhouse gas emissions in the capital.
The spotlight came after the Head of the DKI Jakarta Regional Revenue Agency (Bapenda) Lusiana Herawati said the exemption of Motor Vehicle Tax (PKB) and Motor Vehicle Name Balik Tax (BBNKB) for electric vehicles made the Provincial Government lose potential revenue of around Rp. 2 trillion every year. The statement was considered a signal that the tax incentives for electric vehicles would be evaluated or even revoked.
KPBB Executive Director Ahmad Safrudin reminded that the problem of Jakarta's air quality is still far from being resolved so that incentives for electric vehicles should still be maintained.
"Air pollution in Jakarta has caused 58.2% of residents to suffer from respiratory diseases with a fantastic medical cost burden, reaching Rp. 59 trillion in 2025. Not only that, motor vehicle emissions drive a spike in DKI's Greenhouse Gas (GHG) emissions to 103.25 million tons per year," said Ahmad Safrudin in his statement, Friday, July 24.
According to the KPBB, the electric vehicle incentive is one of the instruments to encourage the transition from fossil-fuel vehicles to low-emission vehicles. The policy is also considered in line with Regional Regulation Number 2 of 2005 concerning Air Pollution Control and DKI Jakarta Governor's Decree Number 576 of 2023 concerning Air Pollution Control Strategies.
Instead of revoking incentives, the KPBB encourages the DKI Provincial Government to implement a tax or emission tax scheme for vehicles that produce emissions exceeding the standard. In this scheme, fossil fuel vehicles that pollute the air are subject to disincentives, while low-emission or zero-emission vehicles still receive incentives.
The KPBB estimates that the policy has the potential to increase the Regional Original Income (PAD) by up to Rp5.7 trillion from vehicles that violate emission standards. This value is considered greater than the potential revenue of around Rp2 trillion that wants to be obtained through the imposition of taxes on electric vehicles.
"Through the emission tax scheme, environmentally friendly vehicles still get a place and are in demand by the public without making the DKI Provincial Government lose regional revenue. It is ironic that the Provincial Government hunts for tax revenue from electric vehicles which actually help overcome the air crisis, rather than taxing the actual source of pollution," said Ahmad Safrudin.
The KPBB also asked the DKI Provincial Government to remain consistent in implementing air pollution control policies. The organization assessed that the importance of increasing regional revenue should not sacrifice efforts to improve air quality and public health in Jakarta.
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