Aceh’s Vehicle Tax Incentives Put Persons with Disabilities in the Driver’s Seat

The Government of Aceh continues to demonstrate its commitment to inclusive public service reform through the launch of integrated One-stop Administrative System (SAMSAT) services and the introduction of vehicle tax incentives for persons with disabilities. Held on 27 May 2025 in Banda Aceh, the initiative promises to be a more equitable and accessible model of service delivery: one that supports vulnerable citizens and at the same time strengthens the province’s fiscal resilience. It is part of a broader effort by the Government of Aceh – with support from SKALA, the Australia–Indonesia Partnership for the Acceleration of Basic Services— to promote inclusive and responsive policymaking in services that affect citizens’ daily lives.

The launch brought together key leaders, including Vice Governor of Aceh H. Fadhlullah, Mayor of Banda Aceh Illiza Sa’aduddin Djamal, Chief of Aceh Regional Police Inspector General Achmad Kartiko, PT Jasa Raharja, and the Regional Leadership Coordination Forum (Forkopimda). During the event, the Vice Governor, the Regional Police Chief, and the Head of Operations at PT Jasa Raharja formalised their shared commitment to integrated and inclusive SAMSAT services by signing a tripartite agreement.

“My gratitude goes to every taxpayer who contributes to Aceh’s revenue. We still rely heavily on central government transfers, but we are striving to attract investment and achieve fiscal independence. The new SAMSAT service model is designed to improve access for the general public while ensuring that persons with disabilities, who are often overlooked in such systems, can benefit from a more inclusive and user-friendly experience,” said Aceh Vice Governor H. Fadhlullah.

The Vice Governor’s statement highlights a broader challenge: around 70 percent of Aceh’s fiscal capacity is dependent on transfers from the central government. At the same time, provinces across Indonesia have been urged to make spending more efficient in line with Presidential Instruction No. 1 of 2025. These fiscal pressures are prompting local governments to optimise their budgets without compromising the quality of basic services.

Promoting Mobility for All

The Social Affairs Office has recorded 20,269 persons with disabilities in Aceh, many of whom rely on vehicles for daily mobility and to support their livelihoods. Until recently, they were required to pay vehicle taxes. This changed with the introduction of Aceh Qanun No. 2 of 2025 on the Fulfillment of the Rights of Persons with Disabilities, as further detailed in Governor Regulation No. 4 of 2024 on Local Tax and Retribution. Under these policies, persons with disabilities are entitled to a 50 percent reduction in vehicle tax and a full waiver of administrative fines for late payments. These measures help enhance mobility, reduce economic barriers, and ensure equal access to public services.

The Chief of Aceh Regional Police Inspector General Achmad Kartiko welcomed the innovation by highlighting its wider benefits for the public.

“The Police Force fully supports this initiative as an innovative way to improve easy, friendly, and inclusive services for the community while also contributing to public safety,” he said.

Regulatory Framework that Promotes Social Inclusion

Ensuring access to mobility and essential services for persons with disabilities requires clear and inclusive regulations that protect their rights. In this effort, SKALA has supported the Government of Aceh in drafting and advocating for the integration of Gender Equality, Disability, and Social Inclusion (GEDSI) principles into local tax and retribution regulations (PDRD). This collaboration contributed to the inclusion of additional incentives, such as a retribution fee reduction of up to 15 percent for persons with disabilities and other vulnerable groups.

By embedding inclusion into fiscal policy and public service delivery, Aceh is taking meaningful steps toward a governance model that leaves no one behind. With continued collaboration between government, civil society, and development partners like SKALA, these efforts will expand access to services for vulnerable groups and empower them to participate fully and independently as active citizens.

Learn more about inclusive services at SAMSAT Aceh in this video: