Indonesian Political, Business & Finance News

Allowing Vehicle Tax Payments Without Previous Owner's ID Deemed Prone to Misuse

| | Source: KOMPAS Translated from Indonesian | Regulation
Allowing Vehicle Tax Payments Without Previous Owner's ID Deemed Prone to Misuse
Image: KOMPAS

JAKARTA, KOMPAS.com – The policy by West Java Governor Dedi Mulyadi allowing annual vehicle tax payments without the previous owner’s ID has elicited varied responses. On one hand, it is seen as facilitating the public, but on the other, it opens up potential loopholes for misuse that need to be seriously anticipated. Public policy expert Agus Pambagio stated that the approach does have a positive impact on increasing regional revenue. However, he immediately provided an important note. According to him, this policy carries risks if not balanced with a strong and integrated vehicle ownership registration system. “Only, the police must quickly complete the Electronic Registration Identification (ERI) or vehicle ownership registration so that ETLE can proceed,” Agus said. “That’s why ERI must be completed first before it can be monitored by ETLE,” Agus added. Meanwhile, the leniency in tax payments without the previous owner’s ID has the potential to allow vehicles to be used by other parties without clear administrative traces. This situation opens up risks of vehicles changing hands multiple times without a title transfer process, making it difficult to trace in cases of violations or even crimes. Furthermore, Agus assessed that the current vehicle ownership verification system is not yet fully ready. “ERI is not yet complete, so (the vehicle ownership verification condition) is not good yet,” he said. “The title transfer fee is zeroed out so that people have the desire to transfer titles without using an ID. (But) in Indonesia, whatever system is made, the intention is always to steal,” he stated. This statement illustrates concerns that administrative ease could be exploited to avoid legal obligations, including not performing title transfers even if the vehicle has changed owners.

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