Realising the Imposition of Watercraft Motor Vehicle Tax (PKAA) for Fishing Vessels in North Kalimantan Province

The Watercraft Motor Vehicle Tax (PKAA) represents a fiscal innovation by the North Kalimantan Government. This policy effectively broadens the provincial tax base by expanding the definition of ‘motor vehicles’ beyond land transport. By categorising watercraft, such as passenger and commercial vessels, as taxable objects, the province is pioneering a new revenue stream. As of the third quarter of 2025, 57 commercial vessels and speedboats have been registered, with 40 units having settled taxes amounting to IDR 121.1 million. This policy brief, therefore, recommends developing a PKAA framework for medium-to-large fishing vessels (>10 GT), based on the principles of fiscal equity and ability to pay, while protecting traditional vessels through tiered tariffs and regional incentives.