Jakarta (ANTARA) – Deputy Minister of Industry Faisol Riza cited Indonesia’s fiscal conditions as a primary consideration for the government to remove tax exemptions for electric vehicles (EV).However, he acknowledged that the national EV industry still desperately needs tax incentives.“It still really needs incentives. But of course, we have to consider our fiscal situation,” he told ANTARA on Wednesday.This statement comes amid changes to the EV tax policy through a new regulation of Permendagri No.11/2026 concerning the basis for imposing motor vehicle tax (PKB), motor vehicle transfer fees (BBNKB), and heavy equipment tax.Taking effect since April 2026, the regulation shifts authority to regional governments, enabling new motor vehicle taxes (PKB/BBNKB) on EVs.Under this regulation, EVs are no longer exempt from motor vehicle taxes, with ownership and transfer remaining subject to taxation.It means that electric cars are still subject to tax, but the amount of tax paid is not always the full amount—and can even be zero—depending on regional policies.The imposition of this tax is not absolute. The central government still allows for incentives in the form of exemptions or reductions, as stipulated in Article 19.The amount of these incentives is left to each regional government. Therefore, future EV tax policies may vary across regions.Amid this issue, Faisol emphasized the government’s unwavering commitment to accelerating energy transformation in the automotive sector, as part of a shift to cleaner energy.Therefore, the increasing role of regional government is needed to support the implementation of the energy transition program, he added.