Local Levy Relief in Several Regions Set to Expire, AISI Requests Extension

KatadataOTO – A number of regions are providing relaxation on the implementation of the PKB (Motor Vehicle Tax) and BBNKB (Motor Vehicle Title Transfer Fee) surcharge in early 2025. Some are postponing it, while others are not implementing it at all.

Then, some provinces are also offering discounts for vehicle owners. So they don't have to dig too deep into their pockets when paying taxes.

Unfortunately, in some areas, this leniency is only temporary. It has only been valid for the past three months.

As implemented by West Java and Central Java. This has prompted a response from AISI (the Indonesian Motorcycle Industry Association).

Photo : PDRD Module: Regional Tax Surcharge

“Next month we have to see whether they will continue to postpone or will raise (the tax),” said Sigit Kumala, Head of the Commercial Division at AISI, to KatadataOTO on Wednesday (12/03).

Sigit admitted that AISI is currently observing the dynamics of the BBNKB surcharge and PKB relaxation.

They are continuously coordinating with relevant agencies to find a way out of this obstacle.

“We need to discuss this with them, because if sales decline, it will affect the industry. Consequently, the tax revenue received by the regional government will also decrease,” he continued.

He also has several suggestions for regional governments for when the PKB surcharge and BBNKB relaxation in their areas ends.

“At most, postpone (the surcharge implementation) or have a gradual increase. For now, those are the only two solutions,” Sigit affirmed.

Furthermore, Sigit stated that the implementation of the BBNKB and PKB surcharge significantly affects new motorcycle sales in the country.

This is because this one rule causes the price of new two-wheeled vehicles to increase quite high. Starting from hundreds of thousands or even millions, depending on the model.

Automatically, the costs that the public must bear become greater, causing consumers to postpone purchases or opt for used motorcycles.

Relaxation Provides Positive Impact.

As a reminder, the leniency on the PKB and BBNKB surcharge has actually been proven to have a positive impact on the automotive industry.

Photo : KatadataOTO

As happened in February 2025, new motorcycle sales showed positive performance. AISI recorded 581,277 two-wheeled vehicles sent from factories to dealers, i.e., wholesales.

The figure above shows an increase of about 4.04 percent compared to February 2024 or YoY (Year on Year). In the same period, only 558,685 units were recorded.

Then, when compared to January 2025, last month's achievement also grew by 3.74 percent.