Police said they are launching a nationwide operation involving thousands of officials to anticipate dozens of potential threats ranging from outbreaks religious intolerance to terrorism ahead of the upcoming Idul Fitri holiday. (Antara Photo/Risky Andrianto)

AISI Expects Motorcycles Sales to Rebound in 2017


OCTOBER 16, 2016

Jakarta. The Indonesian Motorcycle Industry Association, or AISI, expects sales of two-wheelers in the archipelago to rebound next year on the back of a better economic outlook that would support customers purchasing power.

AISI chairman Gunadi Sindhuwinata told reporters on Friday (14/10) he expects motorcycle sales to reach at least 6.6 million units in 2017, up 10 percent from this year.

"Some main factors that would boost the growth are stable economy and strengthening purchasing power," Gunadi said.

The government expects Indonesia's gross domestic product to expand 5.3 percent next year, up from 5.2 percent expansion estimated this year.

The association revised down its sales target for this year to 6 million motorcycles from 6.5 million this year, after sales in the first three quarters failed to meet manufacturers expectations.

By the end of September, motorcycle sales reached 4.35 million units, down from 4.8 million in the same period last year.

Domestic motorcycle sales has been in decline in the past five years, with a saturated market and weakening economy deterring potential customers.

On the bright side, Indonesia's motorcycle exports was up 500 percent so far this year, thanks to demand from developed countries for smaller motorcycles for short distance travels.

Manufacturers shipped 300,000 motorcycles, mostly scooters, abroad with main destinations include Germany, Netherlands, Belgium and the United Kingdom and the Philippines, Gunadi said.