Indonesian Political, Business & Finance News

East Java Provincial Government Holds Motor Vehicle Tax Amnesty Throughout August 2026, Check the Requirements

| | Source: MEDIA_INDONESIA Translated from Indonesian | Social Policy
East Java Provincial Government Holds Motor Vehicle Tax Amnesty Throughout August 2026, Check the Requirements
Image: MEDIA_INDONESIA

The East Java Provincial Government, through the Regional Revenue Agency (Bapenda), has officially launched a motor vehicle tax amnesty programme running from 1 to 31 August 2026. This policy was implemented to alleviate the burden on the community while simultaneously increasing taxpayer compliance within the region.

The implementation of this programme is based on the East Java Governor’s Decree Number 100.3.3.1/482/013/2026. The Head of the Regional Tax Division of Bapenda East Java, Kresna Bimasakti, stated that the government is targeting revenue of Rp392.92 billion from this strategic programme.

“Alhamdulillah, the amnesty programme has been signed by the Governor to provide tax exemptions for this year 2026,” Kresna said in Surabaya on Saturday (1/8).

This year’s motor vehicle tax amnesty programme is specifically designed to target certain groups of society, including:

Specifically for the labour group, the government is providing a 20 per cent discount on motor vehicle tax (PKB) for arrears from 2025 and earlier. However, certain administrative requirements must be met to prevent the misuse of this facility.

“There must be at least a Certificate of Employment and a payslip. Therefore, terms and conditions apply; not everyone can suddenly claim to be a labourer,” Kredna emphasised.

Meanwhile, for low-income households (decile groups), the East Java Provincial Government is providing an exemption from PKB arrears from 2025 and earlier, with a maximum PKB value limit of Rp500,000. Bapenda projects that approximately 162,000 taxpayers will utilise this programme.

According to data from the Audit Board of Indonesia (BPK), the motor vehicle tax compliance rate in East Java has currently reached 88 per cent. This amnesty programme is expected to reduce the remaining arrears, which currently stand at 12 per cent.

In addition to providing incentives through the amnesty, Bapenda East Java continues to undertake proactive measures to reach defaulting taxpayers.

“We are conducting door-to-door visits, providing incentives, and carrying out continuous joint operations to increase compliance and reduce arrears,” Kresna concluded.

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