Indonesia’s government has scrapped a tax exemption for electric vehicles, a reversal that is likely to raise prices and slow adoption in South-east Asia’s largest automotive market. [1]
The policy change comes as Jakarta faces tighter central government budgets and cuts in fiscal transfers to regional authorities. [1]
Analysts said removing the zero-tax mandate could hurt demand and make it harder for Indonesia to meet its energy transition goals. [1]
The decision marks a setback for Indonesia’s push to accelerate EV uptake at a time when the market is still building charging networks, supply chains and buyer confidence. [1]
