Five Provinces Implement Incentive on Motor Vehicle Tax, Mark the Dates!

Several provincial governments in Indonesia have once again introduced motor vehicle tax (PKB) incentives throughout 2025. This policy is aimed at easing the financial burden on the public while also encouraging greater tax compliance.

Cited from Bisnis.com, here are the details of five provinces that have implemented tax incentive programs:

1. Banten

The Banten Provincial Government has issued Governor Regulation No. 170 of 2025 as the legal basis for implementing the PKB incentive program. The program runs from April 10 to June 30, 2025, immediately after the Eid al-Fitr 1446 H celebrations.

Under this policy, the principal and penalties for overdue motor vehicle taxes from 2024 and earlier will be waived, provided that taxpayers settle their current-year tax obligations for 2025 and 2026. However, the incentive does not apply to vehicles being transferred out of Banten.

Governor Andra Soni emphasized that the program is a gift to the people of Banten and part of the government’s broader effort to improve public welfare, particularly through road infrastructure development.

2. Central Java

The Central Java Provincial Government, through its Regional Revenue Agency (Bapenda), is offering a motor vehicle tax incentive program from April 8 to June 30, 2025. The program includes waivers for penalties on overdue PKB payments and Jasa Raharja insurance fines.

Taxpayers are only required to pay the current year’s tax to benefit from the elimination of penalties and back taxes.

3. West Java

A similar motor vehicle tax incentive program is being implemented in West Java as a Lebaran gift for residents. Taxpayers can pay the current year’s tax without being charged penalties or outstanding dues.

According to Mochamad Fajar Ginanjar, Head of the P3DW Licence Office (Samsat) in Bekasi Regency, the program is valid until June 6, 2025, and does not apply to new vehicles, auctioned vehicles that have not yet been registered, vehicles with modifications to their body or engine, or vehicles being transferred out of West Java.

The program is expected to boost tax compliance while also optimizing regional revenue.

4. East Kalimantan

Under the program titled Gratispol, the East Kalimantan Provincial Government is offering a motor vehicle tax incentive as a form of holiday bonus (THR) for the public. The program runs from April 8 to June 30, 2025, and can be accessed at all Licence offices across East Kalimantan.

5. Central Sulawesi

In celebration of the 61st Anniversary of Central Sulawesi Province, the local government is implementing a tax incentive program that includes the waiver of penalties and outstanding PKB dues from April 14 to May 14, 2025. The program applies to all types of motor vehicles.

To participate, residents must prepare required documents such as an ID card (KTP), vehicle registration (STNK), vehicle ownership document (BPKB), and complete a vehicle inspection for ownership transfer or five-year tax renewal.

This motor vehicle tax incentive program serves as an important opportunity for the public to settle their tax obligations without penalties. It also supports the government’s broader efforts to increase regional revenue, which will be allocated toward development initiatives. (KEN)