Check Out! A Comparison of Vehicle Taxes in Indonesia vs Malaysia
Motor vehicle tax in Indonesia has again come under public scrutiny following comparisons with neighboring Malaysia. The annual tax in Indonesia is said to be significantly higher, even several times higher.
The Malaysian tax system is categorized based on vehicle body shape and engine cylinder capacity. This makes the tax amount simpler, more transparent, and more tailored to vehicle specifications.
For example, in Malaysia, the annual tax for a Yamaha NMax is only around IDR 116,000, while in Indonesia it can range from IDR 400,000 to IDR 700,000.
Similarly, the Toyota Veloz is taxed around IDR 466,000 in Malaysia, while in Indonesia it can reach up to IDR 4 million per year.
Meanwhile, the Indonesian vehicle tax system includes several components: Motor Vehicle Tax (PKB), mandatory road traffic accident contributions, and administrative fees. The sum of these components makes the tax burden feel more burdensome than in neighboring countries.
This striking difference has raised the public question: does Indonesia’s vehicle tax system need to be evaluated to make it more proportional and less burdensome for the public?
