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]