Indonesia stated that it had started to introduce battery-electric vehicles in urban and intercity bus fleets and government 
vehicles, and is hoping to continue innovating and improving the environmental performance of 
transportation. Diversification of excess power usage, including the uptake of battery electric vehicles is considered a wise 
approach to reduce the loss from excess electricity production, in line with efforts to control the emission burden and 
monetary burden on the energy trade balance deficit in the road transportation sector. Under the current President Joko 
Widodo’s administration, several targets for EV uptake have been announced since 2017, with the latest announcement 
on incentives have been given for battery electric vehicles, and electric two-wheeler. However, market penetration of 
electric vehicles has not yet seen a drastic increase. So it is necessary to determine the final principle in this net zero 
emission vehicle fiscal policy, namely the determination of vehicle carbon standards followed by a feebate/rebate fiscal 
policy, in accordance with the polluter pay principle.