Indonesian Political, Business & Finance News

Andhika Surya Gumilar Praises West Java Provincial Government's Decision Not to Raise Motor Vehicle Tax

| | Source: REPUBLIKA Translated from Indonesian | Regulation

West Java legislator Andhika Surya Gumilar has praised the West Java Provincial Government’s policy under the leadership of Dedi Mulyadi of not raising the motor vehicle tax (PKB) rate. The policy is regarded as the right step that sides with the public.

According to Andhika, amid economic pressure on lower-income communities, the decision to maintain the PKB rate is considered capable of easing the burden, particularly for lower-middle-class households who depend on private vehicles for their livelihoods. Andhika stated that a fiscal approach emphasising affordability could actually increase compliance among vehicle tax payers.

“This policy of not raising the PKB rate deserves appreciation because people currently need room to develop. When rates remain affordable, payment participation has the potential to increase, so regional revenue is maintained,” said Andhika on Saturday (28 February 2026).

He also emphasised the need to optimise regional revenue without burdening the public, such as by optimising state-owned enterprises (BUMDs).

Andhika further noted that the West Java Provincial Government’s policy under the leadership of Dedi Mulyadi (KDM) has had a positive impact on the community, particularly business operators, such as online drivers or micro, small and medium enterprises (MSMEs) using motorcycles as operational vehicles. Vehicle tax stability is considered helpful in reducing distribution costs.

Earlier, KDM stressed that since the beginning of his tenure a year ago, he has consistently maintained tax rate stability. For him, maintaining affordable taxation is far more effective for increasing public compliance than raising rates, which would burden the community.

“Since I have been leading until January recently, you can ask—I have not raised it. It is better to have high participation than to raise it but have low payment collection,” said Dedi at Sate Building on Thursday (26 February 2026).

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