City Government Offers Motor Vehicle Fuel Tax Reductions

The Jakarta Provincial Government has again issued a regional tax incentive policy in the form of a reduction in Motor Vehicle Fuel Tax (PBBKB) for Jakarta residents based on Gubernatorial Decree Number 542 of 2025 about Motor Vehicle Fuel Tax Reductions. This Gubernatorial Decree took effect on July 22, 2025.

This reduction in PBBKB can lower fuel costs

Jakarta Provincial Regional Revenue Agency Head, Lusiana Herawati, said this policy is taken as a step to maintain economic stability, help control inflation, and support national defense and security operations.

She added that this policy is a form of regional government concern for the economic conditions of the community, while also supporting national strategic tasks.

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"This reduction in PBBKB can lower fuel costs, particularly for public transportation and vehicles supporting national defense. It is hoped that this will help maintain public purchasing power and encourage operational efficiency across various sectors," she said, Friday (7/25).

She continued that with this policy, motor vehicle fuel taxpayers will be more compliant in fulfilling their tax reporting and payment obligations in accordance with applicable regulations, taking into account the established tax reduction rates.

The decree provides three tax reduction schemes:

1. 50 percent reduction for private vehicle users.

2. 50 percent reduction for public transport users.

3. An 80 percent reduction in fuel costs for vehicles used to support defense and security systems, including tanks, armored vehicles, tactical vehicles, aircraft, ambulances, and hospital ships.

For more information, the public can access the official Jakarta Bapenda website at bapenda.jakarta.go.id or contact the regional tax information call center at 1500-177.