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Dream - Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, said the government plans to increase taxes on fossil fuel-powered motorcycles or Fuel Oil (BBM). The proposal for the increase in motorcycle taxes will be brought to a limited meeting (ratas) to be directly conveyed to President Joko Widodo (Jokowi).
"Reason for Increase"
According to Luhut, the revenue from the fuel motor tax will be redirected to subsidize public transportation, such as the Jakarta-Bandung Whoosh High-Speed Train and the Jabodebek LRT.
"We are preparing to increase taxes on non-electric motorbikes. So that later it can subsidize expenses such as LRT or High-Speed Train."
Luhut said, quoted from Liputan6.com, Thursday, June 18, 2023.
"Reducing Pollution"
Apart from being useful for public transportation, the plan becomes one of the strategies to reduce pollution rates in big cities, such as Jakarta.
"This is a great opportunity to make Jakarta cleaner, make us healthier, and reduce the Rp 10 trillion healthcare subsidies that were given by Minister (Budi Gunadi) Sadikin," he added.
Luhut conveyed that the government has implemented various measures to reduce pollution, including transportation infrastructure improvements, odd-even policy implementation, and acceleration of electric vehicle development.
Apart from electric vehicles, Luhut also wants to improve air quality through the implementation of Euro 4 and Euro 5 emission standards for motor vehicles.
"We will also now improve the quality of our diesel or gasoline to be like Euro 4 or Euro 5. Additionally, we will also improve the quality of our fuel by reducing its sulfur content. This will also contribute to improving the air quality in Indonesia," said Luhut.
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