Electric Vehicles in Bali May Lose Tax Incentives

Indonesia’s Ministry of Home Affairs has issued Regulation No. 11/2026. In the new document, electric motorbikes and electric cars are no longer listed separately among the vehicle categories that are explicitly exempt from vehicle tax and the fee charged when ownership changes.
However, this does not mean the incentives have already been fully cancelled: Article 19 leaves regions the right to grant a full exemption or a discount.
Photo: Freepik
The head of Bali’s tax office, I Dewa Tagel Wirasa, said the island will follow the national policy because the rule applies across the country. However, there are no specific figures yet. Bali’s authorities are waiting for guidance from the central government and, at the same time, discussing what level of incentives can be kept so the new rules do not hit owners too hard. Previously, a different rule applied: electric vehicles were excluded from the vehicle tax base and the ownership-transfer fee.
The electric-vehicle market in Bali has grown quickly. A total of 14,301 such vehicles are registered here: 9,790 two-wheelers and 4,511 cars. Growth accelerated especially in 2023–2025, and in the first months of 2026 alone, the fleet increased by another 1,554 vehicles.
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