JAYAPURA – The Papua Regional Revenue Agency reported that a total of 24,437 vehicles took advantage of the penalty waiver and tax arrears discount program at One-Stop Motor Vehicle Administration offices across Papua.

The program, which waived penalties and reduced arrears on motor vehicle taxes, was implemented from May 15 to August 29, 2025.

“As of August 29, 2025, a total of 24,437 vehicles have benefited from the penalty waiver and arrears discount program at One-Stop Motor Vehicle Administration offices throughout Papua,” said the Head of Regional Revenue Agency of Papua, Yosefina Fransisca Way, through the Acting Head of the Tax Division, Ardy Bengu.

He further explained that the total amount of waived motor vehicle tax penalties reached IDR 8.5 billion, while the principal arrears waived amounted to IDR 3.2 billion, out of the stipulated IDR 28.6 billion.

This program also contributed to higher PKB revenue. Before the waiver period (January–April 2025), average monthly motor vehicle tax revenue stood at IDR 4.9 billion. During the waiver period (May–August 2025), the figure rose to IDR 8.3 billion—an increase of 69 percent compared to the pre-program average.

“However, compared to last year, taxpayer enthusiasm remained low. From January to August 2025, the number of vehicles re-registered was 52,555 units, compared to 54,813 units in the previous year, a decline of 4.12 percent,” he noted.

Meanwhile, the number of vehicles with tax arrears settled from previous years reached 18,560 units, almost identical to last year’s 18,555 units, showing a slight increase of 0.03 percent.

“On the other hand, over the past five years, there are still 140,020 vehicles with unpaid motor vehicle taxes, representing a potential vehicle tax revenue of approximately IDR 134 billion,” he said.

According to Ardy, the low taxpayer participation in this year’s waiver program is largely due to limited payment capacity amid the current sluggish economy.

“This condition has also affected the number of new vehicle registrations at One-Stop Motor Vehicle Administration offices. As of August 2025, only 11,377 units were registered, compared to 13,226 units last year, a decrease of 13.98 percent,” he concluded. ***