DKI Waives Vehicle Title Transfer Fees Until January 2025

JAKARTA. The Jakarta Provincial Government is providing an incentive in the form of a 0% Motor Vehicle Title Transfer Fee (BBNKB) or exemption. This facility applies to second and subsequent vehicle transfers.

This provision is stipulated in Jakarta Governor Regulation Number 41 of 2024, effective three working days after its issuance on Friday (10/18), beginning on Wednesday (10/23).

The BBNKB exemption applies from the effective date until 5 January 2025, for vehicles previously registered, either within or outside the Jakarta Province.

Additionally, the Jakarta Provincial Government will waive administrative sanctions, such as interest and/or outstanding fines, on vehicles eligible for the BBNKB exemption.

Read: Government Sets Electric Vehicle Tax and Title Transfer Fee at 0%

Definition of BBNKB

BBNKB is a type of local tax applied to the transfer of motor vehicle ownership, which can occur due to a bilateral agreement or a unilateral action. It may also result from transactions such as sales, exchanges, gifts, inheritance, or incorporation into a business entity.

Motor vehicles exempted from BBNKB include:

• Trains
• Motor vehicles used solely for national defense and security purposes
• Motor vehicles belonging to embassies, consulates, foreign representatives under reciprocity, and international organizations granted tax exemption by the government
• Motor vehicles based on renewable energy
• Motor vehicles owned and/or controlled by manufacturers or importers solely for exhibition purposes and not for sale
• BBNKB is the responsibility of individuals or entities receiving the motor vehicle transfer or the buyer.

Mechanism for BBNKB Exemption

The BBNKB exemption in Jakarta Province is granted automatically. This means taxpayers do not need to apply to receive this facility.

For second and subsequent vehicle transfers made before this regulation took effect, the exemption does not apply. Therefore, taxpayers cannot request a refund for BBNKB that has already been paid. (ASP/KEN)