Money & tax · Bali

Bali Governor Koster Pushes EVs, Accepts Lower Vehicle Tax Revenue

Bali Governor Wayan Koster said on 11 October that he will step up a campaign for electric transport this year. He says he can accept lower vehicle tax income, because vehicles and power plants cause about 90% of the island's air pollution.

News of Published in DOMA News: 3 min read

Key points

  • At Bali Climate Week, Koster promised a more progressive push for clean transport and energy.
  • He cited research saying 90% of Bali's air pollution comes from vehicles and power plants.
  • He called a possible loss of vehicle tax (PKB) revenue an acceptable price for cleaner air and health.
  • The statement names no new rules or deadlines, so for now it is the governor's intention.
90%share of vehicles and power plants in Bali's air pollution, per research Koster cited
Rp 2.8 trillionBali provincial tax revenue in 2025
Rp 1 trillionvehicle tax (PKB) revenue in 2025
Rp 700 billionvehicle transfer fee (BBNKB) revenue in 2025

What the governor said

On Sunday evening, 11 October, Bali Governor Wayan Koster held a press conference at the Jayasabha official residence in Denpasar, as part of Bali Climate Week. He said he wants to cut air pollution by expanding the use of electric vehicles on the island.

Koster said he would run a more progressive campaign this year for clean energy and green transport. The report names no specific measures, regulations or dates. This is a statement of intent, not an adopted rule.

Where the 90% figure comes from

The governor pointed to research findings. According to them, about 90% of air pollution in Bali comes from motor vehicle emissions and power plants. The article does not name the study or its method, so treat the number as an official's estimate.

On an island where most trips are made by scooter and car, the figure helps explain why authorities keep returning to electric transport.

The tax side of the story

The financial angle drew the most attention. Koster does not see lost tax income as a problem if the number of combustion vehicles falls.

The source gives 2025 figures for context. Bali's provincial tax revenue was about Rp 2.8 trillion. The largest parts were the vehicle tax (PKB) at about Rp 1 trillion and the vehicle ownership transfer fee (BBNKB) at about Rp 700 billion. Together that is roughly Rp 1.7 trillion, clearly more than half of provincial tax income.

The source also notes that the national government still offers tax incentives to electric vehicle users in Indonesia.

In other words, a large part of the province's tax base depends on two levies tied directly to how many vehicles are bought, owned and resold. That is why the governor's remark that he is not worried reads as a political choice rather than an accounting calculation. The source does not say how the province would replace any lost income.

Koster on the trade-off

The governor accepted that vehicle tax income may fall. In his view, the loss can be offset by a cleaner environment and healthier residents. He stressed that not everything can be measured in money.

He also linked a cleaner island to a better image for Bali tourism. That is his assessment, and the article gives no figures to support it.

What it means for residents and business

Nothing has been banned or introduced so far. Still, the signal matters to anyone running a fleet of scooters or cars on Bali, for example villas that provide rental transport. If the campaign turns into rules, they could touch charging infrastructure, incentives or limits on older vehicles. No such decisions have been announced.

The provincial budget question is also open. Vehicle taxes bring in a large share of revenue, and a changing vehicle mix would eventually call for other sources. The source does not discuss this, but it is a logical question for future budget talks.

For now the practical takeaway is simple: there are no decisions yet, only a direction. Anyone planning to buy vehicles for rentals or guest transfers can take this signal into account when choosing equipment.

What happens next

Watch for concrete decisions: regional regulations, incentives for electric vehicles and charging infrastructure. For now the campaign is only announced, with no deadlines or documents.

What it means for investors

The statement has no direct effect on property values. If you rent out a villa and offer guests a scooter or car, factor in a possible shift to electric transport and check whether charging points exist nearby. Vehicle tax remains significant for the provincial budget, so we advise tracking any new levies or incentives through official documents rather than statements.

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Q&A

Has Bali adopted a law on switching to electric transport?

No. The source describes only the governor's intention to step up a campaign, with no documents or deadlines named.

How much vehicle tax does Bali province collect?

Per the source, in 2025 the vehicle tax (PKB) brought about Rp 1 trillion and BBNKB about Rp 700 billion out of Rp 2.8 trillion in provincial taxes.

Source
detikBali, published October 12, 2026, language: Indonesian

Prepared by the DOMA editorial team from public reports, with the original source linked above. This is a news review, not legal or tax advice. Not a public offer.

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