Evaluation of the Motor Vehicle Testing Levy Exemption Policy and its Implications for Mandatory Vehicle Compliance in Cilacap Regency

Abstract

The exemption from motor vehicle testing fees in Cilacap Regency represents a public service policy reform aimed at eliminating financial barriers to compliance with mandatory periodic motor vehicle testing requirements. This study aimed to evaluate the implementation of the motor vehicle testing fee exemption policy in Cilacap Regency and examine its implications for compliance with mandatory vehicle testing requirements. A descriptive qualitative research approach was employed, with data collected through interviews, observations, and document analysis, including service delivery records and operational documents from the Cilacap Regency Motor Vehicle Testing Unit. The findings indicated that the fee exemption policy reduced the financial burden on vehicle owners and improved the affordability of testing services. However, it had not achieved the expected improvement in service utilization. The number of vehicles undergoing testing declined from 10,891 in 2023 to 10,198 in 2024 and 9,406 in 2025. From an efficiency perspective, service delivery continued to depend on funding from the regional government budget, particularly for the maintenance and operation of vehicle testing equipment. These findings revealed a discrepancy between the policy's immediate output, namely the provision of testing services without fees, and its intended outcome of improving compliance with mandatory periodic motor vehicle testing requirements.