Indonesia’s electric vehicle transition aims to lower greenhouse gas emissions and strengthen fiscal health by reducing subsidized fuel imports. However, plans for local taxes like PKB and BBNKB raise concerns about dampening nascent consumer interest. According to researchers at INDEF-GTi, this tax potential is estimated at only IDR 8.6 trillion annually and is unevenly distributed. Instead of taxing EVs, the government is advised to adopt alternative revenue streams. Strategic measures, such as implementing Low Emission Zones (LEZ) in business districts and national emission excises, would secure regional revenue without sacrificing clean energy momentum.
