Why Are Harley-Davidson Prices in Indonesia Sky-High?

JAKARTA – The price of Harley-Davidson motorcycles in Indonesia is often considered high compared to other countries. This is not without reason, as the tax structure is the main factor that causes the price of the American-made motorcycles to rise significantly. Operations Director of JLM Auto Indonesia, Irvino Edwardly, stated that tax components have the largest share in forming the price. “The luxury tax alone already makes the motorcycle almost double. Because 95 percent of the luxury goods tax applies to all motorcycles over 500 cc,” he said. The high taxes cause Harley-Davidson prices in Indonesia to soar more than twice compared to prices abroad. In Thailand, Harley-Davidson motorcycles with similar specifications are generally sold for around half the price offered in Indonesia. “So that hasn’t included income tax, hasn’t included VAT. So all of that accumulates the price to more than double from the price abroad,” Irvino said. Meanwhile, touring lines like the Harley-Davidson Road Glide and Harley-Davidson Street Glide can reach Rp 1.2 billion to Rp 1.3 billion. Besides tax factors, administrative processes also affect the consumer experience in owning a Harley-Davidson. For vehicle document processing, units that have already been homologated can be completed in 1–3 months. For new models, the process can take up to 3–6 months.