Car Tax in Indonesia is the Highest in the World, Can Be 30 Times Higher
28 August 2025, 09:00 WIB
The Central Java Government is preparing a vehicle tax discount after implementing the PKB option and BBNKB policy.
By Satrio Adhy
KatadataOTO – Just like other regions, Central Java Province has been implementing the PKB (Motor Vehicle Tax) and BBNKB (Vehicle Title Transfer Fee) surcharge since Sunday (5/1).
This decision was made by the local government in accordance with Law Number 1 of 2022, concerning HKPD (Financial Relations Between the Central and Regional Governments).
However, they have prepared a number of relaxations for car and motorcycle owners. This is to ease the burden on the public.
“The motor vehicle tax rate, previously set at 1.5 percent in Regional Regulation (Perda) No. 2 of 2011, has been lowered to 1.05 percent in accordance with Perda No. 12 of 2023,” read the announcement on the @bapenda_jateng Instagram account.
Then, Bapenda Jateng (Central Java) also adjusted the BBNKB rate. Previously 12.5 percent, it is now set at only 10 percent.
Therefore, there is no increase in vehicle tax in Central Java even though the local government is implementing the BBNKB surcharge and PKB in 2025.
On the other hand, they are also providing relaxations in a campaign titled 'Special Central Java Program for Merak Putih'.
There are a number of benefits to indulge 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.
“This program is only valid from January 5 to March 31, 2025. Remember, you can pay your vehicle tax 30 days before the due date,” they emphasized.
Bapenda Jateng also explained the benefits of implementing the PKB and BBNKB Surcharge. Such as increasing regional income for development and public services.
Furthermore, to improve a number of infrastructures. Ranging from roads, bridges to transportation facilities in Solo, Semarang and surrounding areas.
“Encouraging economic growth. Opening new business opportunities and strengthening the local economy,” said Bapenda Jateng.
They also hope that the relaxation programs prepared can be utilized by drivers as much as possible.
In addition, there is no vehicle tax increase there. So it can encourage the public to fulfill their obligations.
As a reminder, similar programs are also being carried out by a number of provinces. Such as East Java, West Java, and Yogyakarta.
The above decisions were made in the recent past. All were announced through the local government's social media.
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