Bekasi Regency Government Potentially Loses IDR 7.8 Billion PAD Due To KIR Retribution Release Regulation

Vehicle feasibility test activities in the KIR area of the Bekasi Regency Transportation Service, West Java, Wednesday. (ANTARA/Pradita Kurniawan Syah).

BEKASI - The Bekasi Regency Government, West Java, has the potential to lose local revenue of Rp7.8 billion from the motor vehicle test sector or KIR as a result of central regulations related to the exemption of the levy costs. "This projection is based on regional income from the 2023 KIR test levy of Rp7.8 billion or about 98 percent of last year's target," said Head of the Bekasi Regency Transportation Service Yana Suyatna in Cikarang, as reported by Antara, Wednesday, January 17. He said the regulation on the waiver of KIR test fees imposed since January 1, 2024, had an impact on removing the local revenue target from the sector starting this year. This is as stated in the mandate of Law Number 1 of 2022 concerning Financial Relations of the Central Government and Regional Governments as well as Government Regulation of the Republic of Indonesia Number 35 of 2023 concerning Regional Taxes and Regional Retribution. "After the implementation of this free KIR test, there will be no more PAD (Regional Original Income) targets because the rules above have removed costs," he said. Yana said the policy of eliminating KIR costs is expected to be able to encourage an increase in road-worthy vehicle conditions, especially goods transport vehicles and public passengers every six months. "The abolition of the KIR test costs is expected to be positively welcomed by the community by coming to us more enthusiastically and in a larger number or an increase in the number of vehicles undergoing the feasibility test," he said. According to him, the more vehicles that take part in the KIR test, the safety and safety of road users will also increase considering that the vehicle has been declared feasible to operate on the highway.

"The spirit is for traffic safety because we don't know when our vehicle brake failed or broke down because if in Bekasi district once there were vehicles that broke down, the impact could be long," he said.