Jakarta to Limit Car Purchase

TEMPO.COJakarta – Jakarta administration plans to limit new car purchase. Regional Tax and Retribution Office head Edi Sumantri said that the policy will be implemented by raising title transfer fee of a vehicle from to 20 percent. “We have submitted the draft on revisions to the bylaw,” he said yesterday.

Title transfer fee is regulated in Bylaw No. 9/2010. Article 7 holds that title transfer fee of a new vehicle is 10 percent of the market price, whereas the tariff for used vehicles is 1 percent.

Edi explained that the plan to raise title transfer fee is aimed at addressing congestion in the capital city. He expects that it will dissuade Jakartans from buying new motor vehicles and make the switch to public transportation. The policy will only apply for new vehicles. “Because used cars are not additions,” he said.

Jakarta city council (DPRD) Budget Committee member Prabowo Soenirman has expressed his disagreement with the plan. He said that an increase in title transfer fee should only be applied if the city’s public transport system has improved. “Since the aim is to attract people to switch to public transportation, the transportation system should be improved first and foremost,” Prabowo said. He suggests that Jakarta administration limit the age of private cars to 10 years maximum instead.

The Indonesian Motor Vehicle Industry Association chairman Jongkie D. Sugiarto has urged Jakarta administration to synchronize the plan with the policies applied in the surrounding cities. He reasoned that the aim to limit the purchase of new cars will fail if buyers can still register their cars with the governments of Bogor, Bekasi City, Depok, Tangerang City, Bekasi District and Tangerang District. According to Jongki, car owners who register with Bogor administration, for example, can still file for a transfer to Jakarta.

Yustinus Prastowo, Director Executive of Center for Indonesian Taxation Analysis, agrees with the plan to raise title transfer fee. Nevertheless, he said that Jakarta administration ought to ask for the Home Affairs Ministry to help with synchronizing the policies in the capital city and its neighboring cities. “Because vehicles in Jakarta come from other regions,” he said.

The number of cars in Jakarta and its hinterland, however, has declined in the last two years, said Jakarta Police Registration and Identification Sub-directorate head Adj. Sr. Comr. Sumardji. He predicts that the number of vehicles in the city has only increased by 1.2 percent as of the end of last year.

Sumber: Tempo.co, 9 Agustus 2017