Indonesian Political, Business & Finance News

Vehicle Tax Amnesty Waives Penalties for Residents in These Regions

| | Source: MEDIA_INDONESIA Translated from Indonesian | Finance
Vehicle Tax Amnesty Waives Penalties for Residents in These Regions
Image: MEDIA_INDONESIA

Several Indonesian regional governments have introduced motor vehicle tax amnesty programmes starting June 2026. The policies offer various concessions to residents, including waiver of late payment penalties and reductions in the principal tax amount.

The tax amnesty programme provides vehicle owners with outstanding payments the opportunity to settle their dues at reduced costs, with each region implementing different policies based on local regulations.

  1. DKI Jakarta

The Jakarta Provincial Government has officially removed administrative penalties in the form of late payment interest on Motor Vehicle Tax (PKB) and Vehicle Transfer Tax (BBNKB).

The policy was issued through Bapenda Jakarta’s Decision No. e-0018/2026 as part of the celebrations for the city’s 499th anniversary.

Programme Period: 1 June to 31 August 2026.

Concessions:

  • Waiver of PKB late payment interest.

  • Waiver of BBNKB late payment interest.

  1. Jawa Tengah

The Central Java Provincial Government has introduced a vehicle tax amnesty programme valid until the end of 2026.

The initiative aims to enhance taxpayer compliance while offering relief to those with outstanding dues. Programme Period: Valid until December 2026.

Concessions:

  • 5% reduction in PKB principal amount.

  • Administrative penalties adjusted according to the principal tax reduction.

  • Reduction in principal tax and administrative penalties for tax periods from 5 January 2025 onwards.

  • Concessions applied automatically upon vehicle tax payment.

  1. Kalimantan Tengah

The Central Kalimantan Provincial Government offers various incentives for motor vehicle taxpayers, including penalty waivers and tax discounts.

Residents must still pay the principal vehicle tax, ongoing SWDKLLJ penalties, and national administrative fees such as STNK issuance, license plates, and BPKB.

Programme Period: 17 May to 22 July 2026.

Concessions:

  • PKB penalty waiver.

  • Previous years’ SWDKLLJ penalty waiver.

  • PKB principal discount:

    • 6% for payment before due date by up to 90 days.

    • 4% for payment before due date by up to 60 days.

    • 2% for payment before due date by up to 30 days.

  1. Bengkulu

The Bengkulu Provincial Government has introduced an attractive tax amnesty programme for residents with long-standing vehicle tax arrears.

Under the programme, taxpayers only need to pay for the current year’s vehicle tax without settling previous arrears and penalties. Programme Period: 1 May to 31 August 2026.

Concessions:

  • Full vehicle tax penalty waiver.

  • Waiver of previous years’ tax arrears.

  • Taxpayers only need to pay the current year’s vehicle tax.

  1. Bali

The Bali Provincial Government also offers motor vehicle tax incentives based on engine capacity, regulated under Bali Governor Regulation No. 53 of 2025.

In addition to principal tax reductions, taxpayers who have consistently paid their dues receive additional incentives. Concessions:

For vehicles with engine capacity up to 200cc:

  • 8% PKB principal reduction.

  • 10% additional incentive for taxpayers with no arrears.

For vehicles over 200cc:

  • 9% PKB principal reduction.

  • 5% additional incentive for compliant taxpayers.

Benefits of the Vehicle Tax Amnesty Programme

The tax amnesty programme provides residents with a cost-effective solution to settle tax obligations. Beyond penalty waivers and discounts, the policy aims to improve taxpayer compliance and support increased regional revenue.

Vehicle owners in Jakarta, Central Java, Central Kalimantan, Bengkulu, and Bali can take advantage of the programme before its expiry.

Through the Regional Revenue Agency (Bapenda), the policy allows taxpayers to pay only the principal tax without penalties or late payment interest.

The extension of the vehicle tax amnesty has been implemented due to ongoing public queues.

Over 1 million motor vehicles in Jakarta have yet to renew their registration through annual tax payments, resulting in an estimated Rp1 trillion in uncollected regional revenue.

Pramono stated that when Jakarta tax defaulters refuel, use toll roads, or park, a barcode will indicate if the vehicle has unpaid taxes.

Since its launch on 20 March 2025, the Purwakarta Regency Motor Vehicle Tax Amnesty Programme has received positive responses from vehicle owners.

Since 20 March, the vehicle tax amnesty has been highly sought after in West Java, with a 104% increase in taxpayers paying within four days.

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