Car Tax in Indonesia is the Highest in the World, Can Be 30 Times Higher
28 August 2025, 09:00 WIB
The West Java Regional Revenue Agency has started implementing the provincial levy for Motor Vehicle Tax (PKB) and Motor Vehicle Ownership Transfer Fe
By Satrio Adhy
KatadataOTO – The Motor Vehicle Tax (Vehicle Tax or PKB) and Vehicle Title Transfer Fee (BBNKB) surcharge has started to be implemented. One of the provinces implementing it is West Java.
This policy has been in effect in Bandung, Bogor, and surrounding areas since Sunday (5/1). This is in accordance with Law Number 1 of 2022.
It explains the HKPD (Financial Relations between the Central and Regional Governments). This was then passed down to Regional Regulation (Perda) 9 of 2023 concerning Regional Taxes and Regional Levies.
“The base rates for PKB, BBNKB, the BBNKB surcharge, and the PKB surcharge will be listed in the SKKP (Payment Obligation Information Letter),” wrote Bapenda or the West Java Regional Revenue Agency on their Instagram account.
However, the local government is providing some good news. They are providing relief for motorcycle and car owners.
“The good news is, there is no increase in the amount of vehicle tax and title transfer fees in West Java Province,” they continued.
Therefore, the public does not need to worry about the implementation of the PKB surcharge and BBNKB surcharge this year.
You can still fulfill your obligations affordably, without any additional costs when you want to pay the tax.
“Let's be part of West Java's development by paying vehicle taxes on time,” stated the West Java Bapenda firmly.
On the other hand, a similar policy is also being implemented by the provinces of East Java and Yogyakarta. This step is a way to maintain the public's purchasing power.
It should be noted that the PKB and BBNKB surcharge rates to be implemented in early 2025 are 66 percent each.
Then, the PKB surcharge is calculated from the PKB rate (two percent) multiplied by the NJKB (Motor Vehicle Sale Value).
Meanwhile, the amount of the PKB and BBNKB surcharge is calculated by multiplying the base tax by 66 percent.
Take for example the Toyota Innova Zenix Hybrid 2.0 G HEV CVT. The vehicle has an NJKB of around Rp 351 million.
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