Jakarta, October 24, 2024 — The DKI Jakarta Provincial Government (Pemprov) has officially announced the exemption of motor vehicle tax for electric vehicles. This policy is implemented as one of the strategic steps to encourage people to switch to environmentally friendly vehicles in order to reduce air pollution in the capital city.

This step is in line with the DKI Jakarta Provincial Government’s efforts to address the worsening pollution problem in urban areas. The Governor of DKI Jakarta, in a press conference held today, said that this policy will come into effect in November 2024 and covers all types of electric vehicles, both cars and motorbikes.

Commitment to the Environment

The DKI Jakarta Provincial Government stated that this policy is not only aimed at reducing carbon emissions in the air, but also as a real commitment to environmental sustainability. Given the high level of air pollution in Jakarta, the government feels the need to accelerate the adoption of electric vehicles as one of the main solutions.

“We must take real action to protect the environment and the health of the people of Jakarta. Electric vehicles have great potential to reduce the carbon footprint and reduce pollution levels in our capital city,” said the Governor of DKI Jakarta.

The tax exemption for electric vehicles is also expected to trigger an increase in the number of electric vehicles on the streets of the capital. According to data collected from the Environmental Agency, the transportation sector contributes more than 40 percent of air pollution in Jakarta, so converting to electric vehicles is considered an urgent strategic step.

Policy Details and Usage Targets

The DKI Jakarta Provincial Government ensures that the electric vehicle tax exemption policy will apply for the next five years, with the possibility of extension based on the environmental impact evaluation carried out annually. This policy also applies not only to new electric vehicles, but also to people who already have electric vehicles.

The Governor added that the government is targeting a significant increase in the use of electric vehicles in Jakarta in the next two years. “We hope to see a 30 percent increase in electric vehicles in Jakarta by 2026. With this policy, we are optimistic that this target can be achieved,” he explained.

Additional Incentives

In addition to tax exemptions, the DKI Jakarta Provincial Government is also rolling out several other incentives for electric vehicle users. These incentives include providing subsidies for the installation of charging stations at home, as well as parking fee relief in several strategic areas in Jakarta. This aims to make people more interested in switching to more environmentally friendly vehicles.

Furthermore, the government is also working with the private sector in terms of procuring supporting infrastructure for electric vehicles, such as adding public charging stations in various important locations, such as shopping centers, offices, and other public places.

Support from Various Parties

This tax exemption policy has been welcomed by various parties, including the automotive industry and environmental activists. One of the leading electric vehicle manufacturers expressed its appreciation for this policy and hopes that it can increase public interest in switching to electric vehicles.

“Currently, people need additional encouragement to switch to greener technology. With this tax-free policy, consumers will be more interested in buying electric vehicles, so that the market will grow further,” said a representative from an electric vehicle manufacturer.

Environmental activists also welcomed this policy. They consider this initiative to be a positive step in reducing the level of air pollution in Jakarta which has reached a critical level.

Challenges and Hopes for the Future

Although this policy is considered positive, a number of challenges still need to be faced, especially related to the provision of adequate charging infrastructure and public education about the benefits of electric vehicles. However, the DKI Jakarta Provincial Government is optimistic that it can overcome this challenge with the support of various parties.

In the future, it is hoped that more regions in Indonesia will follow in the footsteps of DKI Jakarta in providing incentives for electric vehicles. With more environmentally friendly vehicles, Indonesia can become a greener and cleaner country.