Honda Prepares to Face the Impact of the Levy on Motorcycle Sales This Year

KatadataOTO – Weakening purchasing power and various economic challenges are hindering motor vehicle sales in Indonesia. Additionally, there is the implementation of the tax surcharge policy.

Applying to the Vehicle Ownership Transfer Fee (BBNKB) and Motor Vehicle Tax (PKB), manufacturers do not deny that there is an impact felt by both consumers and manufacturers.

PT Astra Honda Motor (AHM), as one of the producers, affirms that it will continue to follow government policies despite facing various challenges.

It should be noted that the tax surcharge is claimed to have caused vehicle prices to rise. As a result, several regional governments are providing relief in the form of discounts or tax amnesties.

Photo : Courtesy

According to PT AHM, some regional governments have implemented it, but there are also those that have not yet enacted the tax surcharge.

There is a chance the tax surcharge will affect motorcycle sales figures, especially in the second half of 2025.

“We are still waiting. But any significant price increase will certainly have an impact on affordability or purchasing power,” said Octavianus Dwi, Marketing Director of PT AHM in Jakarta, some time ago.

It is known that when it was first implemented, the tax surcharge was said to increase motorcycle prices starting from Rp 800 thousand and even up to Rp 2 million.

However, several regional governments then provided relief in the form of discounts to make it easier for the public.

“It will depend on the operations with finance companies and dealers. Consumers themselves will also make adjustments, that's what we hope for,” said Octavianus.

For your information, the tax surcharge is an addition imposed by regional governments to increase locally-generated revenue (PAD).

However, the amount varies in each region, as it depends on the policy of the local government.

This surcharge does not apply in Jakarta, but in other regions such as Banten, East Java, and Bali. 

Photo : Wahana

Honda had previously hoped that the tax surcharge could be postponed until economic conditions improve or become more stable.

With the implementation of the 12 percent Value Added Tax (VAT) plus the surcharge, there is a chance that public purchasing power will be disrupted again.

Meanwhile, PT AHM revealed that motorcycle sales in the first half of 2025 began to show a positive trend, although they were still lower than in the same period the previous year.