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

Mount Rinjani National Park officially announced the temporary closure of all climbing tourist destinations in the Mount Rinjani area. This closure will last for three months, starting from January 1 to April 2, 2025. “Officially closed to the public starting from January 1, 2025, to April 2, 2025,” explained the Head of the Gunung Rinjani […]

This June, Waterbomb Bali 2025, organized by WAAO (We All Are One) Entertainment, will captivate audiences. Following the resounding success of nine WAAO concerts across Korea and Jakarta, this tenth edition promises to deliver a spectacular celebration in the stunning setting of Bali. Combining the electrifying world of K-Pop with a lively water festival, the […]

Will QRIS transactions be subject to 12% VAT? This question has sparked significant discussion following the government’s plans to increase Value Added Tax (VAT) in 2025. There has been speculation that transactions using the Quick Response Code Indonesian Standard (QRIS) might also be subjected to the 12% VAT. This proposal has drawn complaints from many, […]

Vietnamese-owned, electric-based online taxi service Xanh SM officially hit the road in Jakarta, starting Wednesday, 18th December 2024. The company plans to expand into Bali after assessing the response in Jakarta. Thanh Nguyen, Global CEO of Green and Smart Mobility Joint Stock Company, explained that one of the reasons for choosing Indonesia as an expansion […]

Expat Property

Indonesia Visas

Expat Event

Business Networking
150,000
Afterglow Rooftop Bar & Kitchen
Jakarta Business Networking
200,000
Ritz-Carlton Jakarta, Kuningan, East Kuningan, Setiabudi, South Jakarta City, Jakarta

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery