Jakarta Governor Pramono Anung Cuts Motor Vehicle Fuel Tax

April 23, 2025 | 10:04 pm

TEMPO.CO, Jakarta - Jakarta Governor Pramono Anung has enacted a new policy regarding motor vehicle fuel tax (PBBKB) rates within the Jakarta area. In a statement following an internal meeting on Wednesday, April 23, 2025, Pramono announced that the PBBKB rates would be significantly reduced for both private and public vehicles.

"We will provide relaxation, ease, or discounts. What was previously collected at 10 percent will now be 5 percent for private vehicles and 2 percent for public vehicles," said Pramono when met at Jakarta City Hall, Central Jakarta, on Wednesday, April 23, 2025.

Actually, Pramono noted that the change will likely only be noticeable to Jakarta residents at gas stations. This is because they were previously charged 10 percent. "That is the decision of the Jakarta Governor, and the gubernatorial regulation will be established soon," he explained.

Previously, Pramono had expressed surprise upon hearing news about the 10 percent PBBKB rate for Jakarta. "That hasn't been decided yet; I was also surprised. Even as the governor, I was taken aback by that news, so it hasn't been decided yet," Pramono said in Penjaringan, North Jakarta, on Sunday, April 20, 2025.

According to Tempo's records, the Jakarta Provincial Government increased the PBBKB rate to 10 percent on January 5, 2024. This increase in the motor vehicle fuel tax rate was stipulated in Jakarta Provincial Regulation No. 1 of 2024 concerning Regional Taxes and Regional Levies, signed by Acting Governor of Jakarta, Heru Budi Hartono.

Heru signed the regulation on January 5, 2024, and it officially took effect upon its enactment. "The PBBKB tariff is set at 10 percent," reads Article 24 Paragraph 1 of the regulation, quoted on Monday, January 29, 2024.

This figure was an increase from the previous rate of 5 percent, as stipulated in Jakarta Provincial Regulation Number 10 of 2010 concerning Motor Vehicle Fuel Tax. Meanwhile, the fuel tax rate for public vehicles was set at 50 percent of the PBBKB rate for private vehicles. The basis for PBBKB imposition is the fuel's selling price before Value Added Tax (VAT) is applied.

According to Article 21, the object of PBBKB is the transfer of motor vehicle fuel (BBKB) by suppliers to consumers or motor vehicle users. The taxpayers for motor vehicle fuel tax are individuals or entities that supply BBKB. 1  The collection of PBBKB is carried out by motor vehicle fuel suppliers. 

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