East Java Province Delays Heavy-Equipment Tax Until 2029

Surabaya, 28 November 2025 – The East Java provincial government and the Regional House of Representatives (DPRD) approved amendments to Regional Regulation No. 8/2023 on Regional Taxes and Levies during a plenary session at the DPRD building on 27 November 2025. The draft regulation was adopted and will be enacted as the new regional regulation.

The amendment postpones the collection of the Heavy‑Equipment Tax (PAB) until 2029, allowing the province to update and verify the tax‑object database. Should the updated data reveal a significant revenue potential, the tax may be imposed earlier by gubernatorial decree. The authority to levy the Mineral Non‑Metal and Rock Tax (MBLB) is also transferred from the province to district and city governments.

The deferment provides certainty for construction firms that use heavy machinery, while the provincial government aims to boost its own revenue through more accurate data. If, after 2029, the heavy‑equipment assets still lack sufficient revenue potential, the tax could be discontinued through a further amendment to the regulation.