Pramono Gives Fuel Tax Reduction Up To 80 Percent

JAKARTA - DKI Jakarta Governor Pramono Anung provides incentives in the form of reducing motor vehicle fuel tax (PBBKB) or fuel tax for vehicles in Jakarta.

This incentive was determined through Governor's Decree Number 542 of 2025 concerning the Reduction of Motor Vehicle Fuel Taxes. This decision comes into effect from July 22, 2025.

In this decision, there are three tax reduction schemes provided, namely a reduction of 50 percent for private vehicle users, then a reduction of 50 percent for public vehicle users.

Then, 80 percent reduction in vehicle fuels used supports the main defense and security system tools, including tanks, armored vehicles, tactical vehicles, aircraft, as well as ambulances and hospital ships.

"This policy is taken as a step to maintain economic stability, help control inflation, and support national defense and security operations," said Head of the DKI Jakarta Regional Revenue Agency (Bapenda) Lusiana Herawati in a statement, Friday, July 25.

With this policy, Lusiana hopes that motor vehicle fuel taxpayers will be more obedient in carrying out their obligations to report and deposit taxes according to applicable regulations, taking into account the reduction rates that have been set.

"The reduction in PBBKB is expected to reduce the cost of fuel, especially for public transportation and vehicles that support national defense. Hopefully, this will help maintain people's purchasing power and encourage operational efficiency in various sectors," said Lusiana.

For information, the rules for imposing fuel taxes from the law have been passed down in Regional Regulation Number 1 of 2024 concerning Regional Taxes and Levy.

The tax object in PBBB is the delivery of motor vehicle fuel from providers such as gas stations or fuel producers to consumers aka vehicle users.

In its implementation, DKI Jakarta Governor Pramono Anung decided to apply the Motor Vehicle Fuel Tax (PBBKB) for private vehicles to 5 percent. Meanwhile, public transportation is subject to a 2 percent fuel tax.