motorbike taxes

Indonesian Government Plan to Raise Motorbike Taxes to Promote Electric Motorbike Uptake

Share:

The Indonesian government’s proposal to raise motorbike taxes has faced significant public backlash. Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Panjaitan, is currently reassessing this plan as of Thursday, 18th January 2024.

The proposed hike in motorbike taxes is part of the government’s strategy to boost revenue by imposing taxes on gasoline-powered motorbikes. The generated funds are intended to be allocated for public transportation subsidies, including projects like the LRT or high-speed trains.

 

 

View this post on Instagram

 

A post shared by USS Feed (@ussfeeds)


Luhut Binsar Pandjaitan’s spokesperson, Jodi Mahardi, clarified that the proposal to increase motorbike taxes is currently only in the planning stage and won’t be implemented soon.

“The Coordinating Minister did not mention an imminent increase in motorbike taxes. This was part of a series of initiatives focused on enhancing air quality in Jabodetabek, discussed in a recent cross-ministerial and institutional coordination meeting,” explained Jodi, as reported by Antara.

Igun Wicaksono, the General Chairperson of the Indonesian Garda Online Motorbike Taxi Driver Association, swiftly voiced his opposition to the potential motorbike tax increase. He argued that such a tax hike would elevate their operational expenses, and he strongly disagreed with any increase in taxes.

The potential increase in motorbike taxes has raised concerns, especially among the millions of online motorcycle taxi drivers in Indonesia. Igun Wicaksono, the General Chairperson of the Indonesian Garda Online Motorbike Taxi Driver Association, expressed the hope that the government would consider providing incentives for motorcycle taxi drivers in terms of vehicle tax, rather than imposing additional taxes.

Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Panjaitan, clarified that the proposed tax hike is still in the planning stage and discussed as part of efforts to address air pollution in Jabodetabek. Luhut suggested the possibility of increasing taxes on non-electric motorbikes to subsidize projects like LRT or high-speed trains, aiming to achieve equilibrium in reducing air pollution.

However, Yusuf Rendy Manilet, an economist from the Center of Reform on Economics (CORE), argued that the government should focus on improving the current public transportation system instead of burdening the purchasing power of Indonesia’s lower-middle class. He emphasized the need for a more capable and integrated public transportation system, addressing existing gaps in several cities across Indonesia.

Interested in this topic? Check out our other articles from Social Expat!

Content Writer

Yuriz absolutely loves content writing and exploring the nitty-gritty of various topics. It all started by chance, but writing quickly became an essential part of her life! Plus, she is a huge K-pop fan, jamming out to it all day, every day!

Related News

Living and working abroad as an expat can be both an exciting and rewarding experience, particularly when relocating to Indonesia. From discovering new cultures and expanding international networks to unlocking broader career opportunities, life overseas offers considerable advantages. However, alongside these opportunities comes a practical reality that many expats must manage regularly: sending money back […]

LANY will bring their “Soft World Tour” to Jakarta on 30 October 2026 at Indonesia Arena. Promoted by Live Nation and TEM Presents, the concert is expected to draw strong demand from Indonesian fans. Ticket sales follow a structured schedule. The Artist Presale opens on Monday, 13 April 2026, from 12:00 PM to 11:59 PM […]

An Italian national identified as JF (41) has been arrested by Denpasar Police following an alleged assault on his neighbour in West Denpasar, Bali. The incident reportedly stemmed from a dispute over noise caused by cooking activities. According to the Head of Public Relations for Denpasar Police, First Inspector Gede Adhi Saputra Jaya, SH, MH, […]

EXO-Ls are entering the final stretch. Friday, 10 April 2026, marks the last chance to secure tickets for the EXO PLANET #6 – EXhOrizon in Jakarta through the general sale. The concert is set to take place on Saturday, 7 June 2026, at Indonesia Arena. With strong demand expected, tickets are likely to sell out […]

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery