Indonesia's rich feeling pinch of govt levies on high-end goods

Jakarta

FOR Dimas Sinaro, owning a Harley- Davidson boiled down to one word: pride.

"It shows you're successful," said the shipping line owner on a recent Saturday at a showroom in south Jakarta. "To have a Harley - it's pride."

What was already a rare totem of success here is about to get rarer still. A slumping rupiah and steep import duties and on-road fees that can triple a "Chopper's" final price tag have halved annual sales. Local distributor PT Mabua Harley-Davidson opted to let its import licence lapse and last week began shuttering showrooms as it sold off stock at hefty discounts.

There's little sign the government of President Joko Widodo will roll back the levies on high-end goods, including cars and apartments. That's because the government is desperate to expand its tax take to make up for a shortfall in royalties from commodity sales just as it beefs up spending on infrastructure and services. A tax amnesty and an expanded value-added tax (VAT) are …