Jakarta. Domestic motorcycle sales rose 14 percent in January from the same month last year, boosted by demand from islands outside Java, where household income was on the rise thanks to recovery in global commodities price and government infrastructure spending.
The manufacturers under Indonesian Motorcycle Industry Association (AISI) sold 473,879 motorcycles last month, compared to 416,263 in the same month a year ago, the association's data showed.
"When the price of commodities, such as crude palm oil rises, farmers income would also increase and encourage them to buy motorcycles," Gunadi Sindhuwinata, AISI chairman, said on Thursday (09/02).
Crude palm oil price has risen 38 percent in January from, according to the Malaysia Palm Oil Council.
"In addition, the government's infrastructure projects also drive the economy in the regions," Gunadi said.
AISI has not disclosed the sales data for each region.
Honda Motor remains the market leader in Indonesia, with 78 percent market share last month. Yamaha was distant second with 20 percent market share, followed by Kawasaki at 1.6 percent, Suzuki and TVS.
"Seeing the sales in January 2017, we are optimistic that they can grow 5 percent this year. Last year 5.9 million units were sold," said Gunadi.
Indonesia motorcycle sales fell 8.4 percent in 2016 amid weak consumer purchasing power.