Must Know: What Jakarta's Motor Vehicle Tax Is Used For

KatadataOTO – The Provincial Government of the Special Capital Region of Jakarta has set a new regulation for January 2025, namely an increase in progressive vehicle tax. This is in accordance with Regional Regulation No. 1 of 2024.

The regulation was enacted on January 5, 2024. This means it will be implemented starting next week or on Monday (5/1).

This policy immediately drew many responses from various parties. Some were supportive, while others objected.

On the other hand, questions also arose about where the money from PKB (Motor Vehicle Tax) payments from the public goes. Especially after an increase like the current one.

Photo : Toyota Astra Motor

The Jakarta Regional Revenue Agency (Bapenda) ensures that the taxes paid have many benefits. Especially for the public and drivers.

“So, the motor vehicle tax budget is prioritized for infrastructure improvements. You can see that the roads in Jakarta are all in good condition now,” said Lusiana Herawati, Head of Bapenda Jakarta when met some time ago.

Lusiana then explained that the motor vehicle tax received by the Jakarta government is allocated for the development and maintenance of public transportation modes.

It is also used to build hospitals and schools. So all members of the public can utilize and enjoy them.

“Of course, in these areas, we will continue to improve them. We are also improving mass transportation; we now have the LRT and soon there will be an (additional) MRT,” Lusiana affirmed.

Then, a portion of the motor vehicle tax is also allocated to pay for the mandatory traffic accident fund contribution for land, sea, and air.

Therefore, the public is expected to be compliant in fulfilling their obligations. So they can help with the development in Jakarta.

New Progressive Vehicle Tax Rates

As explained above, the progressive motor vehicle tax in Jakarta has increased. The amounts also vary.

According to Article 7 of DKI Jakarta Regional Regulation No. 1 of 2024, the PKB rate for a second vehicle increases by 0.5 percent.

Thus, from the previous 2.5 percent, it is now 3 percent. Then for the third, it is raised to 4 percent.

Photo : NTMC Polri

Meanwhile, for the fourth car or motorcycle, it is set at 5 percent. However, the fifth ownership and beyond are set at 6 percent.

This is different from the previous rule, which stipulated a 0.5 percent progressive tax rate increase up to the 17th ownership and beyond, with a percentage of 10 percent.

"Ownership of a motor vehicle is based on the same name, national identification number, and/or address," states Article 7 paragraph (4).