Plis Deh Jakarta!

The governer, in an applausable move, has rejected the lowering of automotive taxes proposed by the Finance Industry and Jakarta Revenue Agency. Why yes, it will remain a very big burden to motor vehicle owners, but see what happens when the tax is lowered:

• lower taxes means more people will buy cars or motorcycles.
• more cars and motorcycles equals worse traffic jams!
• more traffic jams actually hurt the economy more than it will impact the supposed revenue that comes from the increase of peope buying cars or motorcycles.

Note that the taxes have not been raised either. So Bang Foke has basically stated that “this is my call, not yours” to those agencies, and further pointing out that if we want to have a stimulus package for the industry, it shouldn’t be by cutting revenue here and there – it should be one that actually creates jobs.

Let me take that point a bit further – reviving the economy doesn’t mean selling more cars *winking at Gaikindo*, but it means making sure the people have enough money to spend. And for that to happen, it shouldn’t be just considering one industry out of the thousands available in Jakarta.

Maybe Gaikindo can take a hint from the telco operators, where they are actually decreasing their prices, but making money elsewhere from the same subscribers.