Jakarta Authorities Clarify 80% Reduction in Fuel Tax

22 hours ago 7

TEMPO.CO, Jakarta - The Jakarta Provincial Government has officially issued Governor's Decree Number 542 of 2025 as a strategic step to maintain the economic stability of the capital. This decree sets the policy of reducing the Motor Vehicle Fuel Tax (PBBKB) by up to 80 percent, which takes effect from July 22, 2025.

In its statement, the Jakarta Provincial Government mentioned that the fuel tax policy was issued to control inflation, support the purchasing power of the people, and maintain the efficiency of strategic sectors, such as national defense and security.

"We want to control inflation so that it doesn't rise significantly. The Jakarta government is very serious about controlling inflation," said Jakarta Governor Pramono Anung during an event in Jatinegara, East Jakarta, quoted from Antara, July 28, 2025.

As quoted from the official website of Bapenda, the Governor's Decree divides the policy of reducing PBBKB into three schemes:

  1. 50 percent reduction for private vehicle users.
  2. 50 percent reduction for public transportation users, including city transportation and buses.
  3. Up to 80 percent reduction for operational vehicles of defense and security, including tanks, armored vehicles, tactical vehicles, military aircraft, as well as emergency vehicles such as ambulances and hospital ships.

According to Lusiana Herawati, the Head of the Jakarta Regional Revenue Agency (Bapenda), this policy demonstrates the regional government's concern for the people's economic conditions.

According to the Jakarta Regional Revenue Agency (DPP), Lusiana mentioned that this policy is expected to reduce fuel costs, particularly for public and defense support vehicles.

This decision is not only based on economic urgency, but also refers to strong legal grounds, such as Law Number 1 of 2022 concerning Financial Relations between the Central and Regional Governments. In addition, this policy also considers the objective conditions of taxation and the burden on motor vehicle users.

Despite the tariff reduction, the Jakarta Provincial Government still requires all taxpayers to report and deposit taxes as usual. This is done to maintain the accountability and transparency of the regional tax system.

Governor Pramono also emphasized that this tax reduction will not disrupt regional revenue. As the realization of regional income from the tax sector has almost reached the set target. This relief is also considered an incentive for Jakarta residents who are taxpayers.

Although the duration of this policy has not been officially announced, the Jakarta Provincial Government promised to announce the detailed implementation period soon.

In his statement, Pramono Anung dismissed the idea that Jakarta's poverty rate is rising. He mentioned that the annual poverty rate shows a decreasing trend, in line with the policies taken by the regional government to maintain price stability and purchasing power.

For more information regarding the reduction of PBBKB, the public can access the official website of the Jakarta Regional Revenue Agency at bapenda.jakarta.go.id or contact the regional tax call center at 1500-177.

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