April 24, 2025 | 07:00 pm
TEMPO.CO, Jakarta - The Jakarta Provincial Government will impose a 5% Motor Vehicle Fuel Tax (PBBKB) on private vehicles, while public vehicles will be subject to a 2% rate. Previously, the PBBKB for private vehicles stood at 10%.
“Yesterday, I made a decision for Jakarta. We will provide a discount, reducing the tax from 10% to 5% for private vehicles and 2% for public vehicles,” said Jakarta Governor Pramono Anung at City Hall on Wednesday, April 23, as quoted by Antara.
He noted that the 10% PBBKB rate had been in place for over a decade. Under the new provisions, the governor has been granted discretion to adjust the rate.
“This is a form of relief for Jakarta residents. It is a decision made by the Jakarta Governor and will be socialized shortly. The gubernatorial regulation (Pergub) will be drafted immediately,” Pramono said.
Earlier, Pramono admitted he was surprised when asked about the current 10% PBBKB rate. The policy is stipulated in Jakarta Provincial Regulation No. 1 of 2024 on Regional Taxes and Levies, which is derived from Law No. 1 of 2022 on Financial Relations between the Central Government and Regional Governments (UU HKPD).
“The law has already provided for this tax, stating a maximum rate of 10%. Jakarta had not made a specific decision. It will be finalized at 3:00 pm today. We held a meeting yesterday, but I had not yet reached a decision,” Pramono said on Tuesday, April 22.
According to the Jakarta Regional Revenue Agency (Bapenda), the PBBKB is levied on all types of fuel oil (BBM) or gas used by motor vehicles and heavy equipment. Each time residents purchase fuel, they are automatically subject to the tax.
However, it is not the consumers who remit the tax, but the fuel providers—such as producers or importers—who collect and submit it to the regional treasury when the fuel is distributed to consumers.
The current PBBKB rate is set at 10% of the fuel’s selling price before value-added tax (VAT). However, there is a special exemption for public transport vehicles, which are charged 5%, or half the standard rate.
“This policy was created to support more affordable public transportation,” Bapenda stated.
The PBBKB aims to improve the regional economy and encourage wiser fuel consumption. Jakarta Provincial Regulation No. 1 of 2024, signed during Heru Budi Hartono’s tenure, raised the PBBKB rate from the previous 5% to 10%.
Nonetheless, the tax itself is not new. It was previously regulated under Jakarta Provincial Regulation No. 10 of 2010 on Motor Vehicle Fuel Tax.
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