Luxury car imports prohibited?

Luxury car imports prohibited?

From Neraca

The Ministry of Industry and Trade bans the imports of automobiles of 4000cc and above or with a value of more than US$50,000. The possession of such a luxury car is illegal so the government will not issue a registration license. The reason for the ban, given by industry and trade minister Jusuf Kalla, is to prevent social envy on the road at a time when many citizens are experiencing economic hardships.

Is that true? In my opinion, if the government applies a capitalist system, why does it go only half way? Let luxury cars and big motorcycles circulate on the roads in Indonesia. Just levy a tax on them. If the vehicles are plundered it will be a case for the police, not the Ministry of Industry and Trade.

The policy reminds us of the New Order era, applying the bad part of the economic system. Greed was taken from capitalism, the centralistic system was borrowed from communism/socialism. Is it still valid? Imports of luxury goods have no significant influence on social envy. What is significant is collusion, corruption and nepotism (KKN) and the irregularities found in the Bank Indonesia Liquidity Support Loan (BLBI).

If somebody has worked hard and honestly, they should be able to enjoy their earnings in the country. This is better than to compel the person to buy a luxurious house and a luxury car abroad.

Does Minister of Industry and Trade Jusuf Kalla, a very rich businessman, want to enjoy his wealth at home; for example, by having a limousine or a sports car? If I were in his place I would certainly say, of course. It is up to the tax authorities to find the capitalists.

Why is the government so fond of playing with regulations instead of going through economic instruments?

R. BAKROEN

Jakarta