Surcharge on Motor Vehicle Tax and Ownership Transfer Fee Returns to Haunt the Automotive Industry This Year

KatadataOTO – The surcharge on Motor Vehicle Tax (PKB) and Motor Vehicle Title Transfer Fee (BBNKB) is once again in the spotlight for several parties in 2026.

This is because several Provincial Governments (Pemprov) in Indonesia only provided relaxation for this policy last year.

Meanwhile, in 2026, the implementation of the surcharge could change, causing the price of new motorcycles to rise.

This makes the BBNKB surcharge and PKB likely to once again haunt the automotive industry in the country.

Photo: PDRD Module: Regional Tax Surcharge

In light of the above facts, the Indonesian Motorcycle Industry Association (AISI) has given its opinion on the regulation.

“We once again urge regional governments to be careful if they plan to increase (the surcharge),” said Sigit Kumala, Head of the Commercial Division of AISI, to KatadataOTO some time ago.

Sigit believes that Indonesia's economic condition in 2026 will not have fully recovered. Therefore, the implementation of a new rule will be very influential.

Especially in terms of public purchasing power, as it has the potential to decline again throughout 2026.

“It must be considered, if the industry is struggling, the threat is certainly a drop in sales,” Sigit added.

Sigit then said that if new motorcycle sales were to fall, it would affect regional revenue.

Of course, that would not be good for regional and provincial governments, as the income for development would certainly be hampered.

“Secondly, if there are shift reductions, the victims will certainly be the employees,” Sigit concluded.

Therefore, Sigit hopes that the relaxation of the PKB surcharge and BBNKB will be reapplied to maintain public purchasing power.

So that the automotive industry, especially the new two-wheeled vehicle market, can be maintained or even grow.

This would bring a positive effect, both for the industry and the local regional government.

Evaluation of the BBNKB and PKB Surcharge

For your information, the Directorate General of Regional Financial Development of the Ministry of Home Affairs will evaluate the two policies mentioned above.

This evaluation is expected to provide information regarding the implementation of the PKB and BBNKB surcharge in all regions.

Photo: AHM

This includes looking at the synergy that has been established between provincial governments and district/city governments in optimizing the receipt of regional revenue.

It should be noted that PKB and BBNKB are types of taxes collected by the provincial government, thus becoming a source of Locally-Generated Revenue (PAD).

These levies will be used to finance regional governance and development.