Motorcycle Loans Strain Local Budgets

Riding a motorcycle to work not only tires him out, it also increases his transportation costs because he has to spend a lot of money not only for fuel but also for the maintenance of the motorcycle.

KOMPAS/RADITYA HELABUMI

Motorcycle riders do not wear masks while on the West Outer Ring Road, West Jakarta, Monday (7/3/2022).

Ilham, 23, a private employee in Semarang, once had to borrow money from his brother to fulfill his living needs. Ilham's monthly salary is only 1.5 million, far below the city's regional minimum wage of Rp 2.8 million (about US$200). Ilham spends around about Rp 800,000 a month, mostly for the cost of riding a motorcycle to work

The spending is for motorcycle loan installments, fuel and maintenance. Ilham's house is far from a public transportation hub, so he uses a motorcycle to get to work.