Excise Tax on New Motorcycles Said to Be Able to Save the Automotive Industry

KatadataOTO – The planned implementation of an excise tax on new motorcycles has become a topic of public discussion. The proposal is seen as potentially burdening the public.

Especially for the middle-class group. Because they are quite dependent on two-wheeled vehicles for their daily activities.

However, the imposition of an excise tax on motorcycles could actually have a positive impact. Especially for manufacturers in the country.

“Excise tax, in the context of motorcycle products, also serves as an important instrument for the government to control certain products,” began Yannes Martinus Pasaribu, an automotive expert and academic from ITB (Bandung Institute of Technology), speaking to KatadataOTO on Friday (02/05).

Photo : KatadataOTO

Yannes believes that if the plan is implemented, the government can suppress or control the distribution of foreign products.

This way, the domestic motorcycle market will not be flooded with two-wheeled vehicles from other countries.

“For example, to protect the growth of domestic products against the influx of imported goods,” Yannes continued.

Indeed, Indonesia is a potential market for selling two-wheeled vehicles from various countries.

Especially after the trade war between China and the United States. Chinese manufacturers need new markets to sell their products.

This certainly poses a threat to the existence of the automotive industry players in the country. Because products from China usually have very low prices.

Also Presents Negative Impacts

On the other hand, the proposed excise tax for new motorcycles is also seen as bringing several negative impacts. Especially when Indonesia's economic condition is not doing well.

“The government must protect the entire motorcycle ecosystem, from manufacturers, existing local components, to assembly plants,” said Yannes.

He revealed that even without an excise tax, new motorcycle sales in the country have already declined from January to March 2025.

Photo : TrenOto

Therefore, if the plan is implemented, it could potentially make the two-wheeled vehicle market even more sluggish and less vibrant.

“What is very likely to happen as a result of a drastic decline in motorcycle sales is it will lead to operational efficiency measures by companies, and then to layoffs (Termination of Employment),” Yannes emphasized.

Therefore, the proposal to apply an excise tax to new motorcycles must go through various studies, so as not to threaten the business continuity of domestic manufacturers in the future.