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

The Bali Provincial Government has introduced criminal sanctions to control the conversion of productive agricultural land into villas and commercial properties. Bali Governor I Wayan Koster signed a Regional Regulation (Perda) on the Control of Productive Land Conversion and the Prohibition of Nominee Land Ownership Transfer on Tuesday, 24 February 2026. The regulation aims to […]

For many expatriates, adjusting to life in a new country often comes with unexpected administrative challenges. Among the most commonly overlooked is taxation. While relocating to a new country can be an exciting professional or entrepreneurial opportunity, understanding several fundamental compliances is often far from straightforward. Indonesia maintains a structured and increasingly strict regulatory framework […]

The Meteorology, Climatology, and Geophysics Agency (BMKG) has warned of potential heavy rainfall in several regions during the 2026 Eid homecoming period. The forecast was presented at the Eid al-Fitr Preparation Coordination Meeting held at the Mutiara Auditorium, Police Science College, South Jakarta, on Monday (2 March 2026). The briefing was delivered by BMKG Head […]

Roemah Koffie and BAIC Indonesia have launched a joint Ramadan campaign and a new collection of Eid hampers for 2026. The initiative was introduced during a collaboration event held at BAIC Tower in Gading Serpong. Both brands are part of the JHL Group and used the event to present several programmes for Ramadan and Eid […]

Expat Events

Indonesia Visas

Expat Event

Unofficial Networking Event
200,000
Social Padel House
Social Networking
150,000
Club Italiano, Grand Hyatt

Indonesia Guide

Just For Fun

Write For Us

Exclusive Promotions

Event Gallery