Vehicle Tax Surcharge Unexpectedly Affects Toyota Dealers in Central Java and Yogyakarta
The introduction of a vehicle tax surcharge briefly caused car sales in Central Java and the Special Region of Yogyakarta (DIY) to fall considerably. The automotive market in the two regions even recorded a slump of up to 30% after the surcharge policy came into effect.
Vice President Director of Nasmoco, Jodjana Jody, said the impact of the surcharge was evident in changes to Toyota vehicle sales in Central Java and DIY. Before the policy took effect, consumers had in fact been purchasing earlier, creating a surge in sales.
Nasmoco is the official Toyota dealer network (under PT New Ratna Motor) serving vehicle sales, servicing and spare parts for the Central Java and DIY regions.
“Why did sales fall? Because last year in Q1 Central Java did not yet have the surcharge. So, for your information — I am sure you all understand the surcharge issue — the surcharge is a regional tax of roughly 66% levied on top of the BBNKB and PKB that apply. So vehicle prices in Central Java are indeed higher,” Jody said at the Toyota Journalist Test Drive (JTD) in Yogyakarta on Monday (14/9/2026).
The price difference shifted the timing of vehicle purchases. Consumers who knew the surcharge would be introduced were driven to buy vehicles earlier, before the levy took effect.
“Last year’s Q1 had no surcharge yet, so people rushed to buy and sales rose quite sharply. This year’s Q1 was already subject to the surcharge, because it has applied since Q2 2025. And as a result of the surcharge, the Central Java–DIY market fell 30% last year — down 30%,” he said.
The impact was also reflected in Nasmoco’s sales at the start of 2026. First-quarter sales this year remained below the same period a year earlier.
“Looking at Q1 — last year our sales for the quarter were around 3,838. This year, 2026, they fell to 3,105,” Jody said.
However, the pressure began to ease once the market went through a period of adjustment. Nasmoco’s sales then showed improvement in the second quarter and into the third quarter of this year.
“In Q2 when the surcharge came in, sales were 2,600, but this year, having had a year of practice — our muscles are strong again — our sales rose to 3,500. Then in Q3, specifically July and August, last year it was still 1,800, but thankfully we have now reached 2,288,” Jody said.
The market recovery eventually drove sales growth. As of August 2026, Toyota sales across the Nasmoco network had already exceeded the previous year’s performance.
“Overall, compared to last year, our sales have reached 8,900, up 7.6% versus last year. That is the performance. Our five top models, with number one of course being the Avanza, followed by the Innova, Veloz, Zenix and Calya,” Jody said.