North Sumatra Provincial Government Lowers Electric Vehicle Tax, KESDM Hopes Other Regions Also Do It

Electric car illustration (Photo: dock.unsplash)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) appreciates the North Sumatra Provincial Government for lowering the electric vehicle tax to 10 percent. This step was taken to encourage the acceleration of the conversion of more massive electric vehicles in North Sumatra.

"The Directorate General of EBTKE, Ministry of Energy and Mineral Resources, is grateful to the North Sumatra Provincial Government and its staff and development partners who have supported and collaborated in the implementation of the conversion program of electric motorcycles," said Director of Energy Conservation of the Directorate General of EBTKE Gigih Udi Atmo quoted Wednesday, November 8.

Gigih hopes that the support provided by the North Sumatra Provincial Government can be followed by other Provincial Governments in Indonesia so that the purpose of the conversion program which is part of the energy transition to achieve net zero emission can be achieved.

"I invite local government agencies to be able to take on the role of one of the important actors in the energy transition. The Regional Government has a big contribution in mobilizing energy transitions that can be realized through energy efficiency and conservation," said Gigih.

The North Sumatra Provincial Government's efforts to support the electric vehicle program that received Government appreciation, in addition to including the conversion target of electric vehicles in the General Plan for Regional Energy (2020-2050) also issued a policy of providing fiscal incentives in the form of tax reductions for electric vehicles.

"Through North Sumatra Governor Regulation Number 20 of 2022 concerning the Basic Calculation of the Imposition of Motor Vehicle Taxes and Motor Vehicle Names in 2022, the imposition of Electric Vehicle Motor Vehicle Tax (PKB KBL) based on batteries for people or goods is set at 10 percent of the basis for the imposition of PKB," said Head of Energy and Electricity at the North Sumatra ESDM Service Karlo Purba.

In addition to vehicle taxes, the imposition of the name of an Electric Motor Vehicle (BBNKB KBL) based on batteries for people or goods is also set at 10 percent of the basis for the imposition of BBNKB.

Karlo added that the imposition of KBL PKB and battery-based KBL BBNKB for public transportation or people is also set at 10% (ten percent) of the basis for the imposition of PKB and BBNKB.

The different amount is applied by the North Sumatra Provincial Government for vehicle taxes and transfer fees for fossil-based vehicles, which are determined to triple the large lebih, which is 30 percent. The North Sumatra Provincial Government hopes that with incentives for reducing the tax on electric vehicles and the transfer fee for the name of electric vehicles, people can switch to electric vehicles so that the electric vehicle ecosystem can be realized immediately.

In addition to reducing vehicle tax and transfer fees, the North Sumatra Provincial Government also coordinates with the Ministry of Energy and Mineral Resources (ESDM) to conduct Technical Guidance (Bimtek) and technical training on converting fuel motors to electric motors and coordinating with PT PLN (Persero) to build 12 units of Public Electric Vehicle Charging Stations (SPKLU).