BREAKING: Starting May 1, 2025, Buying Fuel in Jakarta Comes with a 10% Regional Tax

Jakarta, April 22, 2025 – Planning to fill up your gas tank in Jakarta? Starting May 1st, it’ll cost a bit more. The Jakarta Provincial Government has officially announced that all fuel purchases at gas stations (SPBU) in the capital will be subject to a 10% Regional Fuel Tax.

This new tax is formally known as the Regional Tax on Fuel for Motor Vehicles (PBBKB) and is part of a broader move under Indonesia’s Law No. 1 of 2022 on Fiscal Relations between Central and Regional Governments.

Public Transport Gets a Break

To support public mobility and reduce emissions, the government has introduced a reduced tax rate of 5% for public transportation vehicles. This includes:

• TransJakarta buses
• Mikrotrans and angkot (public minivans)
• Licensed public taxis
• Other vehicles officially designated as public transport
  
  

What’s Behind the Policy?

The new tax policy is rooted in Jakarta Regional Regulation No. 1/2024 and aims to:

• Boost Jakarta’s Regional Revenue
• Encourage fuel efficiency and reduce consumption
• Promote the use of public transportation
• Support the transition to cleaner, more sustainable urban mobility
  
  

How Will It Affect Fuel Prices?

The 10% tax is applied before Value Added Tax (VAT), and it will be automatically included in the pump price. So yes, you’ll see a slight increase at the gas station. But you won’t have to calculate anything — it’s built into the final price.

The tax will be collected by fuel distributors (e.g., Pertamina or private suppliers) and submitted to the Jakarta regional treasury.

Why This Matters

Jakarta, a city of over 10 million people, is pushing to tackle pollution and traffic congestion. By nudging private vehicle owners to consider public transport or electric vehicles, this policy is part of a broader sustainability effort.