Australia-Indonesia Partnership Strengthens NTT’s Inclusive Motor Vehicle Tax-Relief Policy

The East Nusa Tenggara (NTT) Provincial Government has provided a 50 per cent reduction in motor vehicle tax for people with disability who are registered owners of a vehicle. The policy forms part of NTT’s efforts to promote more inclusive local revenue governance and expand equitable access to public services.

During an official visit to NTT last week the Australian Ambassador to Indonesia, Rod Brazier, had an opportunity to see the policy in action at Kupang’s One-Stop Administration Services Office (Samsat).

Ambassador Brazier observed the service process, spoke with staff and met one of the beneficiaries. He commended the NTT Provincial Government’s efforts to make public services more inclusive.

“I have seen today that the service system for persons with disabilities is very good. I also met the staff and one of the beneficiaries who has directly experienced the benefits of the services provided by this office,” he said.

NTT Governor Emanuel Melkiades Laka Lena said the motor vehicle tax-relief policy reflected the provincial government’s commitment to ensuring that public services were more accessible and equitable for all members of the community.

NTT Provincial Regulation No. 1 of 2026 on Local Revenue Administration provides for concessions and facilities for specific community groups, including people with disability. This builds on NTT Governor Regulation No. 56 of 2025, which provides the 50 per cent reduction in motor vehicle tax for people with disability (in effect since August 2025).

Access to transport can help people with disability reach education, employment, health services and social and economic activities. The tax reduction helps ease the cost of owning a vehicle for supporting these daily mobility needs.

During the visit, Governor Laka Lena expressed his appreciation for the Australian Government’s partnership in supporting development in NTT.

“Thank you to the Australian Government, particularly through the SKALA program, which has supported us on many occasions. Amid the various constraints faced by local government, SKALA has provided support that is closely aligned with NTT’s development needs,” he said.

Governor Laka Lena added that the partnership had helped strengthen the provincial government’s capacity to formulate and implement policies that were more responsive to community needs, including those of vulnerable groups.

SKALA (Synergy and Collaboration for Accelerating Basic Service Delivery), an Australia–Indonesia partnership program, supports the NTT Provincial Government’s efforts to improve public financial management, implement basic services and strengthen the use of data to inform more targeted policies. It also supports greater participation by vulnerable groups, gender mainstreaming and social inclusion.

For the motor vehicle tax-relief policy, SKALA provided technical input for policy development, facilitated stronger coordination among relevant government agencies, and strengthened capacity to help ensure local revenue administration was more effective, transparent, accountable and responsive to the needs of people with disability.

NTT’s experience demonstrates how stronger local governance can be translated into policies that deliver direct benefits to communities. The motor vehicle tax-relief policy is expected to improve mobility, access to services and independence for people with disability, and offers a model to other regions seeking to develop more inclusive fiscal policies.