medcom.id, Jakarta: PT Mabua Harley-Davidson (MHD) officially bid farewell as authorised dealer of Harley-Davidson in Indonesia. It is mentioned by Djonnie Rahmat, Director of MHD in their dealership at Pondok Pinang, South Jakarta, Wednesday afternoon (2/10/2016).
Aside from bidding farewell, Djonnie also mentioned several reasons behind the closing down. Tax issues and weakening rupiah currency against the United States (US) dollar are the main factors.
"The tax for these motorcycles have reached 300%, which has burdensome for us. Many people say MHD is overpriced, it is because of the huge tax burden, we only took small amount of margin," he explained.
Several tax regulations create great burden to the business, such as PMK no.175/PMK.011/2013 on the import tariff increase of income tax 22 from 2.5% to 7.5%. Then the PP no.22/2014 on luxury goods sales tax increase from 75% to 125%,
Then, PMK no.90/PMK.03/2015 on the establishment of tariff of income tax 22 on luxury goods for large sized motorcycles with the machine capacity above 500 cc from 0% to 5%. Lastly, the PMK no.132/PMK.010/2015 on the import duties fee increase for big bikes from 30% to 40%.
It is not surprising that the most expensive type of Harley-Davidson may reach up to Rp1.4 billion, whereas previously, the same type could be afforded for the price of Rp600-700 million.
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