Due to Vehicle Tax Revenue, This Region of Indonesia Reaps Over IDR 100 Billion
The Jepara Regency government has recorded significant revenue from the vehicle tax scheme. In 2025, the realisation of revenue from the Motor Vehicle Tax (PKB) and Motor Vehicle Name Transfer Fee (BBNKB) exceeded the target, reaching over IDR 100 billion.
According to the Jepara Regency Financial and Asset Management Agency (BPKAD), the target for PKB revenue in 2025 was IDR 70.46 billion, but by the end of the year, it reached IDR 71.49 billion, or 101.5 percent of the target. Meanwhile, BBNKB revenue reached IDR 42.19 billion, exceeding the target of IDR 34.42 billion, or 122.6 percent.
Thus, the total revenue from the two types of taxes reached approximately IDR 113.68 billion in one year.
In 2026, tax revenue also began to show a positive trend from the beginning of the year. As of January 2026, PKB revenue was recorded at IDR 5.84 billion, or about 8.1 percent of the target of IDR 72.22 billion. Meanwhile, BBNKB revenue reached IDR 3.94 billion, or 11.2 percent of the target of IDR 35.28 billion.
Head of the Jepara Regency Financial and Asset Management Agency (BPKAD), Hasannudin Hermawan, explained that the revenue came from the portion of motor vehicle tax collected by the provincial government and then distributed to local governments.
“The Motor Vehicle Tax is part of the Jepara Regency’s regional revenue, which comes from motor vehicle tax collected by the provincial government. Meanwhile, the Motor Vehicle Name Transfer Fee (BBNKB) is part of the regional revenue from tax on the transfer of ownership of motor vehicles,” he said.
He also expressed his appreciation to the public who continue to fulfil their obligation to pay vehicle taxes, including the tax portion, even though there were calls from some parties to stop paying motor vehicle taxes.
The local government is also preparing several strategies to maintain the momentum of tax revenue, one of which is through incentives in the form of tax discounts during certain periods.
This step is based on the experience in 2025, when two rounds of tax discounts proved to be able to encourage public compliance in paying vehicle taxes. In 2026, the Central Java Provincial Government also plans to provide a 5 percent discount on PKB payments for the period of February 20 to December 31, 2026.
Meanwhile, the Regent of Jepara, Witiarso Utomo, emphasised that the tax policy is not just about increasing regional revenue, but also an instrument to strengthen regional development.
“This tax is not just an adjustment of tariffs, but part of a strategy to accelerate regional development. The funds collected will be focused on improving road infrastructure, both district and provincial roads that are the responsibility of the region,” he said.
The tax is an additional regional tax collected together with provincial taxes, and then distributed to district or city governments. This scheme is regulated in Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments, and strengthened through Government Regulation Number 35 of 2023 concerning General Provisions on Regional Taxes and Retributions and Jepara Regency Regional Regulation Number 1 of 2024 concerning Regional Taxes and Retributions, which was then updated through Regional Regulation Number 8 of 2025.