AISI Says 12 Percent Tax on Big Bike Sales Has No Impact

KatadataOTO – The 12 percent VAT will be fully implemented on February 1, 2025. The automotive sector will also be affected by this new policy.

Especially for motorcycles with engine capacities from 250 cc to 500 cc and above, they will be subject to a tax increase.

AISI (the Indonesian Motorcycle Industry Association) has spoken out, stating they have no objection if the above occurs.

“Of course, the government has thought about it, as those (big bikes) do not contribute significantly to the total motorcycle sales,” began Sigit Kumala, Head of the Commercial Division at AISI, to KatadataOTO.

Photo : KatadataOTO

According to Sigit, if the 12 percent VAT is imposed on the purchase of big bikes (moge), it will not have a significant impact on consumers.

Considering that those who buy two-wheeled vehicles in this segment are from the upper-middle class.

“So perhaps the impact will not be too burdensome, in my opinion,” he continued.

Sigit explained that the most important thing is not to impose the 12 percent VAT on two-wheeled vehicles with engines from 110 cc to 160 cc.

This is to maintain the public's purchasing power. So that new motorcycle sales in Indonesia can continue to grow in 2025.

He then stated that not imposing the 12 percent VAT on all types of motorcycles could encourage Honda, Yamaha, Suzuki, and other manufacturers to increase their Local Content Level (TKDN).

“Who knows, it might even intensify efforts to create new products with an even higher TKDN in Indonesia. So it's not just about imports,” Sigit emphasized.