TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Car ownership and use in the city to get more expensive next year
The city administration will increase the vehicle-ownership transfer fee (BBNKB) next year, thus raising the price of second-hand cars
Change Size
T
he city administration will increase the vehicle-ownership transfer fee (BBNKB) next year, thus raising the price of second-hand cars.
Despite the low-cost green car (LCGC) policy, owning more than one car will also become costlier as the current progressive tax will be raised.
The BBNKB will be increased to 20 percent of a second-hand vehicle's value, from the current 10 percent, while the progressive tax code will be set at between 2 percent and 8 percent of the vehicle value, rising from 1.5 percent to 4 percent.
This will impose a 1 to 2 percent tax rate on the first vehicle owned by any individual and 2 to 10 percent on the subsequent vehicle purchases.
Head of the city's Tax Agency Iwan Setiawandi said the tax and fee increases would require a revision to Bylaw No. 8/2010 on Vehicle Taxes in the regional legislation program (Prolegda) in 2014.
It has been forecast that the LCGC policy will boost car sales by 50,000 in the city out of a nationwide target of 1.1 million this year. 'We are looking for ways to control the number of vehicles through taxation,' Iwan told The Jakarta Post on Wednesday.
The proposed 20 percent rate for the BBNKB is the highest tax rate allowed under Law No. 28/2009 on Regional Taxes and Fees.
He said the multiple-vehicle tax system, which had been applied in Jakarta since 2011, had forced motorists to pay a new additional tax on top of the annual vehicle tax for each vehicle.
'We hope the high tax and fees will discourage people from buying cars. We also hope the Banten and West Java administrations will also take the same measures to prevent [Jakarta residents] from evading the new taxes,' Iwan said.
Meanwhile, deputy head of Commission C overseeing the city budget, Cinta Mega, said she would support the city's effort to use taxation to reduce the number of vehicles in the capital. The City Council also welcomed Governor Joko 'Jokowi' Widodo's plan to apply electronic road pricing (ERP) to alleviate traffic congestion in Jakarta.
On Thursday, the legislation body (Balegda) of the City Council held a meeting with the Jakarta Police, the Jakarta Transportation Agency and the Indonesian Transportation Society (MTI) to discuss the application of electronic traffic-law enforcement.
Jakarta Police traffic-law enforcement division head Sr. Comr. Adj. Hindarsono explained that electronic surveillance would be the most effective option to implement ERP, as well as improving the vehicle registration and identification process in the city.
'With such a system, traffic law enforcement will become more transparent and effective. Traffic surveillance will continue 24 hours a day. Traffic policemen won't be able to abuse their authority and the violators won't be able to deny the violations,' Hindarsono told the meeting, citing that 99 percent of traffic violators refused to admit their wrongdoing.
Jakarta Transportation Agency head Udar Pristono said that the city expected to apply the ERP policy during the first quarter of next year.
'We aim to apply the ERP policy on the three-in-one roads plus Jl. HR Rasuna Said because those corridors have an adequate number of Transjakarta buses. The quality of the buses are also better than on other corridors,' Udar said.
The city aims to set the tariff starting at Rp 21,000 (US$1.85).
'But the rate has not been decided ' we need further studies. We can put the ceiling in the draft so the actual rates can be issued in a gubernatorial decree ' that way we can adjust the rates at anytime,' he added.
During the meeting, Udar confirmed that the city had canceled its plan to introduce an odd-even plate number policy.
Balegda chairman Triwisaksana expressed support for the city's plan, saying that the council was ready to draft the bylaw.
MTI transportation policy specialist Damantoro lauded the planned policy, citing the society's optimism about its success rate.
'This is the right moment to apply such policies as residents are aware of the city's seriousness about enforcing bylaws. Motorists will accept it eventually,' he told the Post.
Damantoro stressed that the city should also ensure that the use of the funds generated from the ERP was transparent.
