Indonesian Motorists to Pay More for Vehicle Registration, Licensing
Jakarta. The National Police are set to impose a higher fee for motorists seeking a vehicle registration certificate starting on Friday (06/01) in an effort to improve service quality.
“The National Police have not updated the fee since 2010,” Finance Minister Sri Mulyani said on Tuesday.
“It has been seven years and many other ministries and government agencies have adjusted [their non-tax income target] due to inflation and service improvement.”
According to a government regulation issued in 2016, the fee for obtaining a vehicle registration certificate, or STNK, will increase by 100 percent to Rp 100,000 ($7.45). The cost of registering a four-wheeled vehicle will also increase by nearly 167 percent to Rp 200,000.
Motorists will pay the same amount to renew the certificate every five years.
They now have to pay Rp 25,000 for two-wheeled vehicles and Rp 50,000 for four-wheeled vehicles each year after paying their annual vehicle tax.
The government will also increase the cost of license plates by 100 percent to Rp 60,000 for motorcycles and Rp 100,000 for cars and other vehicles.
The new regulation will also see motorists pay up to 275 percent more to obtain a motor vehicle ownership certificate, known as a BPKB, rising to Rp 225,000 and Rp 375,000 respectively.
The fee increase will help the government reach its Rp 250 trillion non-tax revenue collection target for the 2017 state budget, up about 2 percent from a Rp 245.1 trillion target in the 2016 revised state budget, but less than the Rp 262.36 trillion realization.
National Police Chief Gen. Tito Karnavian said the increased fee will allow the police to improve its service and the quality of driving licenses, vehicle registration certificates and vehicle ownership certificates.
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