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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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Published Mon, May 4, 2026 · 07:00 AM
[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.
