Jakarta (ANTARA) – Home Affairs Minister Muhammad Tito Karnavian has urged all governors across Indonesia to provide fiscal incentives in the form of tax exemptions for electric vehicle owners.The directive is outlined in Circular Letter No. 900.1.13.1/3764/SJ on the Provision of Fiscal Incentives in the Form of Exemptions from Motor Vehicle Tax and Motor Vehicle Title Transfer Fees for Battery-Based Electric Vehicles.“The provision of incentives in the form of exemptions or reductions in regional taxes, namely Motor Vehicle Tax (PKB) and Motor Vehicle Title Transfer Fees (BBNKB), applies to battery-based electric vehicles, including vehicles converted from fossil fuels to battery-based electric systems,” the minister wrote in the circular, signed on Wednesday (April 22).The measure follows up on Presidential Regulation No. 79 of 2023, which amends Presidential Regulation No. 55 of 2019 on the Acceleration of the Battery-Based Electric Vehicle Program for Road Transportation, as well as Minister of Home Affairs Regulation No. 11 of 2026.The policy aims to improve energy efficiency and strengthen energy security while supporting the transition to clean energy.Authorities believe the move will help maintain environmentally friendly air quality and promote energy conservation in the transportation sector.The instruction was also issued in response to global economic dynamics that have led to instability in energy availability and prices.The fiscal incentives specifically cover exemptions or reductions for Motor Vehicle Tax and Motor Vehicle Title Transfer Fees.Incentives for vehicles manufactured in 2026 and earlier are regulated under Article 19 of Minister of Home Affairs Regulation No. 11 of 2026.Governors are required to report the provision of these incentives by attaching a gubernatorial decree to the Ministry of Home Affairs.The deadline for submitting these reports to the Directorate General of Regional Financial Development is May 31, 2026.