ARCHIVES
VOL. 11, ISSUE 11 (2025)
The impact of tax incentives on Electric Vehicles in Indonesia
Authors
Visit Ida Rahayu, IM Arjaya
Abstract
Tax laws related to electric vehicles and
infrastructure can either encourage or hinder the expansion of the eco-friendly
vehicle sector. Supportive tax policies, such as tax exemptions and subsidies,
have been shown to significantly increase the adoption of electric vehicles.
One policy that can be implemented to increase electric vehicle sales is to
provide tax subsidies. Tax subsidies refer to the reduction or elimination of
taxes provided by the government to encourage the use or purchase of certain
goods. This study aims to determine how tax laws and infrastructure can
influence or encourage the expansion of the electric vehicle sector in
Indonesia. The results indicate that supportive fiscal policies, such as tax
incentives, can significantly accelerate the adoption of electric vehicles. The
Indonesian government has set a subsidy of IDR 7 million for 200,000 electric
motorcycles, with the goal of converting 50,000 motorcycles by the end of 2023.
Finance Minister Sri Mulyani stated that for electric cars with a 40% local
content (TKDN), government assistance will take the form of a 10% reduction in
value-added tax (VAT), with only 1% VAT being borne. Electric car charging
facilities are not yet widespread in most parts of Indonesia, currently only
found in large cities. The Indonesian government is expected to consistently
accelerate the development and equitable distribution of electric vehicle
infrastructure, as well as maximize subsidies and tax incentives to increase
electric vehicle use as an effort to reduce carbon emissions.
Download
Pages:112-114
How to cite this article:
Visit Ida Rahayu, IM Arjaya "The impact of tax incentives on Electric Vehicles in Indonesia". International Journal of Law, Vol 11, Issue 11, 2025, Pages 112-114
Download Author Certificate
Please enter the email address corresponding to this article submission to download your certificate.