Indonesian Political, Business & Finance News

Civil Servants in Arrears on Vehicle Taxes Face Potential Cuts to Performance Allowances

| Source: VIVA Translated from Indonesian | Regulation
Civil Servants in Arrears on Vehicle Taxes Face Potential Cuts to Performance Allowances
Image: VIVA

The Banten Provincial Government is examining a firm policy for civil servants (ASN) found to be in arrears on motor vehicle taxes. The sanction would involve deductions from performance allowances (tukin).

Head of the Banten Regional Revenue Agency (Bapenda), Berly Rizki Natakusumah, stated that the scheme is currently being formulated for prompt submission to the governor through coordination with the deputy governor and the regional secretary.

“This policy is being drafted to strengthen tax discipline among ASN. As taxpayers, compliance with tax payments is an inseparable part of bureaucratic ethics,” he said in Serang on Tuesday, 21 April 2026.

According to Berly, this step aims to send a message to the public that ASN must be at the forefront and serve as examples in tax compliance before the local government promotes broader public awareness.

To refine the policy, Bapenda will coordinate with the Regional Personnel Agency (BKD) and the Communication, Informatics, Statistics, and Encryption Agency to align employee data with vehicle ownership data.

In addition to internal discipline, Banten’s Bapenda is implementing an accelerated collection strategy by involving all its employees. Each employee is targeted to resolve collections from 10 taxpayers per month.

“With around 960 employees, we are targeting approximately 9,600 tax arrears to be collected each month. This programme applies to both field employees and administrative staff within Bapenda,” he explained.

The agency has prepared a performance-based incentive mechanism. Employees who meet targets will receive additional incentives every three months, while those who fail to meet targets will face incentive reductions.

Regarding regional financial performance, Berly revealed that the realisation of vehicle tax revenue for Banten Province in the first quarter of 2026 shows a positive trend.

To date, revenue has reached Rp1.978 trillion out of a set target of Rp2.002 trillion. This realisation leaves only about Rp18 billion short of the target for this period.

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