Indonesian Political, Business & Finance News

South Kalimantan Offers Up to 50 Percent Vehicle Tax Incentives

| Source: ANTARA_ID Translated from Indonesian | Economy
South Kalimantan Offers Up to 50 Percent Vehicle Tax Incentives
Image: ANTARA_ID

The Provincial Government of South Kalimantan, through its Regional Revenue Agency (Bapenda), is providing fiscal incentives to the public through a relief policy on Motor Vehicle Tax (PKB) and Motor Vehicle Title Transfer Fee (BBNKB) of up to 50 percent.

Head of the South Kalimantan Provincial Bapenda, Subhan Nor Yaumil, stated that the policy, effective from 14 August to 30 November 2026, serves as a stimulus and an effort by the government to facilitate the public in fulfilling their vehicle tax obligations.

‘Starting 14 August 2026, the South Kalimantan Provincial Government is providing several incentives related to PKB and BBNKB in accordance with the governor’s decree,’ he said in Banjarbaru on Friday.

The first incentive is the complete waiver of administrative sanctions or fines on the principal PKB for residents who pay their vehicle tax during the programme period. Additionally, the provincial government is offering a discount on the current year’s principal PKB, with a 10 percent reduction for four-wheeled vehicles and a 20 percent reduction for two-wheeled and three-wheeled vehicles.

‘For four-wheeled vehicles that pay tax in August and within the programme period, a 10 percent discount on the principal tax is given. Meanwhile, two-wheeled and three-wheeled vehicles receive a 20 percent discount,’ he explained.

Furthermore, the provincial government is providing incentives for residents who own motor vehicles with out-of-province licence plates and wish to process a mutation into South Kalimantan. For vehicles undergoing a mutation from outside the province, a 50 percent discount on PKB is granted for the first and second years, while the BBNKB is waived according to the programme’s provisions.

‘We urge residents of South Kalimantan who still have vehicles with out-of-province plates to process the mutation immediately. The PKB for the first and second years is discounted by 50 percent, and the BBNKB is free,’ he said.

Furthermore, for intra-provincial mutations or the vehicle title transfer process, the government is also providing a 50 percent discount on the principal PKB for the current year. Subhan invited the public to take advantage of this opportunity before the programme ends, noting that this incentive allows residents to settle their tax obligations and manage vehicle administration more affordably.

‘This policy is valid from 14 August to 30 November 2026 throughout South Kalimantan Province,’ he stated. The fiscal incentive programme is part of the commemoration of the 76th Anniversary of South Kalimantan Province and the 81st Anniversary of the Republic of Indonesia, as well as a form of government service to the public in increasing motor vehicle tax payment compliance.

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