Indonesian Political, Business & Finance News

Reasons Why CBU Motorcycle Prices Can Be Very Expensive: The Main Causes

| | Source: KOMPAS Translated from Indonesian | Trade
Reasons Why CBU Motorcycle Prices Can Be Very Expensive: The Main Causes
Image: KOMPAS

JAKARTA, KOMPAS.com – CBU or Completely Built Up motorcycles are one of the hobbyist motorcycle segments that still have a market in Indonesia. Although their prices are far more expensive than locally assembled motorcycles, interest in imported motorcycles remains stable.

Kamal Firhad, owner of Safari Motor dealership in West Jakarta, said that CBU motorcycle consumers generally come from the hobbyist circle, so the national motorcycle market conditions do not greatly affect sales.

“CBU motorcycles seem unaffected (by market conditions). Because they are mostly for hobbyists, and they are not likely to be the first motorcycle. They are definitely the second or third motorcycle,” said Kamal to Kompas.com (11/5/2026).

However, one of the biggest challenges for imported motorcycles is their very high selling price. The main cause comes from the burden of taxes and layered import costs.

“Import duty definitely. Then VAT is different. PPnBM also applies. All motorcycles over 250 cc have the same PPnBM. Whether 1,000 cc or 500 cc, it’s the same,” said Kamal.

This condition causes CBU motorcycle prices to soar several times over their original price in the country of origin. Especially if the imported motorcycle has a large engine capacity.

For example, motorcycles with engines over 250 cc are subject to the same PPnBM tariff, without considering engine capacity differences. This means that 500 cc or 1,000 cc motorcycles are still subject to the same luxury goods tax category.

According to Kamal, the solution to make CBU motorcycles more affordable for consumers is to adjust tax policies, especially PPnBM.

“(If you want it cheaper) basically just reduce the PPnBM, so the motorcycles can enter,” he said.

Nevertheless, the imported motorcycle market in Indonesia remains alive thanks to hobbyist consumers who seek unique, premium models, or motorcycles not officially sold by manufacturers in the country.

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