An entourage of Harley-Davidson riders enter the busway on Jalan S. Parman in Jakarta on Jan. 30, 2014. (JG Photo/Afriadi Hikmal)

Half of Harley Motorcycles in Indonesia Are Said to Be Illegal

FEBRUARY 16, 2015

An entourage of Harley-Davidson riders enter the busway on Jalan S. Parman in Jakarta on Jan. 30, 2014. (JG Photo/Afriadi Hikmal)

Jakarta. About 5,000 Harley-Davidson motorcycles in Indonesia are illegal, according to an estimate by the official importer of the United States motorcycle maker, signifying a lack of supervision in the country's excise and police office that in turn costs the country billions of rupiah in tax revenue.

Djonnie Rahmat, the president director of Mabua Motor Indonesia, an authorized distributor of Harleys in the country, said on Friday that he estimates that there is an illegal Harley motorcycle for every legally purchased one. Those illicit motorcycles account for half of the 10,000 Harleys in Indonesia today, he added.

Djonnie said that owners of illegal Harleys don't bother paying taxes, which can be more than the offshore retail value of the bike.

"For example, for the Harley type Ultra, the official price is Rp 830 million [$65,100], and Rp 500 million of that price is tax," he said.

Djonnie said that he has reported the rampart problem to police headquarters.

Investor Daily

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