Jakarta, April 22 -- 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 mo...