East Java Provincial Government waives vehicle taxes for two months
The East Java Provincial Government will waive several motor vehicle taxes for two months, from 1 October to 30 November 2026, in conjunction with the 81st anniversary of East Java Province.
“This is driven by our hope to ease the burden on the people of East Java. Historically, the people of East Java have been very compliant in paying their taxes,” said East Java Governor Khofifah Indar Parawansa in Surabaya on Wednesday.
The second phase of this policy includes the waiver of administrative sanctions on Motor Vehicle Tax (PKB) and Motor Vehicle Title Transfer Fee (BBNKB), as well as the removal of progressive PKB charges.
The East Java Provincial Government is also providing a 20 per cent reduction on principal PKB arrears from 2025 and previous years for two-wheeled motorcycles owned by taxpayers working as labourers.
Furthermore, principal PKB arrears for two-wheeled motorcycles owned by taxpayers listed in the Acceleration of Extreme Poverty Eradication (P3KE) or the National Single Social and Economic Data (DTSEN) will also be waived. This waiver also extends to two-wheeled motorcycles used for public service via online transport applications and three-wheeled motorcycles.
“In this second phase, we want to express our gratitude in relation to the 81st Anniversary of the East Java Provincial Government, which falls on 12 October,” said Khofifah.
The policy is stipulated in the East Java Governor’s Decree Number 100.3.3.1/570/013/2026 regarding the Second Phase of East Java Provincial Local Tax Waivers.
Based on projections by the provincial government, the policy is expected to benefit 636,662 tax objects, with a total waiver value of Rp1,729,355,554 and potential revenue of Rp2BR272,195,719,566. The waiver of administrative sanctions for PKB and BBNKB is the largest scheme, predicted to be utilised by 610,481 objects with a potential revenue of Rp267,674,792,430.
Other segments include the progressive PKB waiver for 480 objects, a 20 per cent arrears reduction for labourers affecting 20,273 objects, and waivers for P3KE/DTSEN data holders affecting 2,177 objects. Additionally, motorcycles used for online transport services and three-wheeled vehicles are also included in the relief programme.
The Head of the East Java Regional Revenue Agency (Bapenda), Bobby Soemiarsono, stated that the policy is intended to ease the burden on citizens with PKB obligations to the provincial government. “This waiver is valid for two months. We hope that after the Governor’s launch, the public can take full advantage of this opportunity, which may not occur in subsequent years,” he said.
Bobby noted that taxpayer compliance in East Java has increased from approximately 85 per cent in the previous year to 87 per cent this year. “The specific segments for online drivers and DTSEN data are part of the Provincial Government’s attention to the underprivileged who require motor vehicles as tools for work,” he added.
He further noted that public tax compliance supports the funding of various development programmes in East Java, including infrastructure and education. Previously, the first phase of the tax waiver, which ran from 1–31 August 2026, was utilised by 461,521 tax objects, generating Rp214,309,924,000 in revenue.