Reducing Air Pollution: Government Proposes Tax Hike on Non-Electric Motorcycles

Friday, 19 January 2024

Reducing Air Pollution: Government Proposes Tax Hike on Non-Electric Motorcycles

JAKARTA. The government is planning to increase the tax on non-electric motorcycles. This was conveyed by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan.

Quoting CNN Indonesia, the purpose of the policy is to reduce air pollution. Because, additional state revenue from the tax increase will later be allocated to the public transport subsidy budget, such as LRT or fast trains.

The plan is that the discourse will be discussed together with President Joko Widodo, to formulate the regulations. As for now, the discourse has only been discussed by some Ministries/Institutions (K/L).

Not in the Near Future

However, as quoted from, the plan will not be implemented shortly. The government is also still considering other incentives to encourage the use of public transport.

By maximizing the use of public transport, it is expected that people will shift from previously using private transport. Conversely, the government also intends to make it more difficult to use private vehicles.

According to the Joint Committee for Leaded Gasoline Phase-out (KPBB), the use of private vehicles is considered to be one of the causes of increased air pollution. Especially motorcycles, which contribute 45%.

Then, trucks 20%, buses 13%, diesel cars 6%, petrol cars 165 and three-wheeled vehicles 0.23%. (ASP/KEN)


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