AISI Hopes More Regions Grant Relief on Motor Vehicle Tax Surcharge

KatadataOTO – A number of regions have started implementing the surcharge for PKB (Motor Vehicle Tax) and BBNKB (Vehicle Title Transfer Fee). This policy has been in effect since Sunday (5/1).

East Java, Central Java, West Java, Yogyakarta, Bali, and Banten are also implementing it. However, all these provinces are providing various relaxations.

Take Central Java for example, they lowered the PKB rate. Previously 1.5 percent under Regional Regulation (Perda) No. 2 of 2011, it is now 1.05 percent according to Perda No. 12 of 2023.

Then, the Central Java Regional Revenue Agency (Bapenda Jateng) also adjusted the BBNKB rate. It was previously 12.5 percent and is now set at only 10 percent.

Photo : National Police Traffic Corps

Therefore, there is no increase in vehicle tax in Central Java even though the local government is implementing the BBNKB and PKB surcharge in 2025.

Bapenda Jateng is also providing relaxations in a campaign titled ‘Jateng Special Program for Merak Putih’.

There are a number of benefits to accommodate the public there. For example, a 13.94 percent discount on the principal PKB.

Then there is also a special discount on the principal BBNKB of up to 24.70 percent. So residents can take advantage of it immediately.

On the other hand, the government of the Special Region of Jakarta is different from the provinces above. This is because they are not implementing the BBNKB or PKB surcharge in 2025.

Seeing this, AISI (Indonesian Motorcycle Industry Association) welcomes all the relief provided by the provinces on the island of Java.

“Yes, that's also good, so it turns out the increase is not as high as was initially discussed,” said Sigit Kumala, Head of the Commercial Division of AISI, when contacted by KatadataOTO.

Sigit also hopes that the policy above can be emulated by other regions, because the increase in PKB and BBNKB rates is considered still high due to the implementation of the surcharge.

Photo : PDRD Module: Regional Tax Surcharge

Especially for provinces outside the island of Java, for example Kalimantan to parts of Sulawesi. They are considered to have set quite high vehicle tax rates after implementing the PKB and BBNKB surcharge.

Therefore, Sigit asks them to follow Central Java, East Java, Yogyakarta, and Banten, which are not hiking motor vehicle taxes despite still implementing the surcharge in 2025.

“Hopefully, other provinces that are increasing it (vehicle tax) can see the condition of the community. Then emulate other provinces, ultimately providing relatively impactful incentives,” Sigit concluded.