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Indonesia’s EV dream hits a bump as government claws back tax perks

Name: Indonesia’s EV dream hits a bump as government claws back tax perks
Brand: The Business Times
SKU: b7c2c385ac442ce1

The Business Times@the

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businesstimes.com.sg/international/asean/indonesia…

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Language: English

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businesstimes.com.sg

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Indonesia's EV dream hits a bump as government claws back tax perks - The Business Times
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Indonesia’s EV dream hits a bump as government claws back tax perks
The zero-tax mandate removal could undermine the country’s energy transition goals, say analysts
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Elisa Valenta
Published
Mon, May 4, 2026 · 07:00 AM
阅读简体中文版 (beta)
Vietnamese electric vehicle manufacturer VinFast has established a production facility in Karawang, West Java, Indonesia. PHOTO: ELISA VALENTA, BT
[JAKARTA] Indonesia’s push to accelerate electric vehicle adoption suffered a setback recently after the government scrapped a tax exemption for EVs.
The move is expected to drive prices higher, potentially dampening demand in South-east Asia’s largest automotive market.
The policy emerges against a backdrop of tighter central government budgets , with reduced fiscal transfers to regional authorities.
Indonesia Electric vehicles
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MDDI (P) 046/10/2024. Published by SPH Media Limited, Co. Regn. No. 202120748H. Copyright © 2026 SPH Media Limited. All rights reserved.
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