14 August 2016

Big Bikes in Bali

According to a leading legislator in Bali, the Provincial Administration of Bali is turning a blind eye to more than half of the large motorcycles believed to be operating illegally on the Island. Known locally as “MoGe” (Motor Gede), the owners of “big bikes” have been accused by a member of the Bali Provincial House of Representatives (DPRD-Bali) of failing to pay their fair share of taxes and other obligations to the State. MoGe's in Bali are distributed not via formal vehicle dealers. Therefore the required tax is never paid. There may be more than 2,000 big bikes operating in Bali, but perhaps only 800 operating with all the required documentation demonstrating tax compliance. The tax invoice (faktur pajak) is issued by a registered vehicle dealer showing the price, its type, fuel type and other details. But because this information is all falsified the proper tax obligation cannot be imposed. Some of the big bikes in Bali have been reverse engineered, with enthusiasts ordering component parts and creating or assembling a bike in a local workshop or even at their homes. This results in a 'big bike' that has not been registered and cleared by customs and operating with no tax paid.
With no formal registration, these bikes still manage to travel the roads, ironically, sometimes in convoys provided with official police escorts.The PDIP legislator said the easiest way to bring the illegal big bikes into conformance with the law would be enforcement by the Customs Office who could easily detect if any vehicle or its spare parts ever officially passed a formal customs and excise procedure. Indonesian Customs Officials could simply seize vehicle that never entered the country via the formal procedures.

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