Jakarta's new deputy governor Sandiaga Uno said the city's administration plans to lift its ban on motorcycles from traveling on Jalan M.H. Thamrin, one of the main thoroughfares in Central Jakarta. (Antara Photo/Risky Andrianto)

August Motorcycle Sales Up 5%


SEPTEMBER 12, 2017

Jakarta. Indonesian motorcycle sales rose 5 percent in August compared with the same month a year ago, continuing a trend the industry expects to last until the end of this year.

Indonesia Motorcycle Industry Association (AISI) data released on Monday (11/09) shows sales having risen to 554,923 units last month, from 527,536 in the same month last year.

"We think this is due to people having delayed purchases in the first half of this year, when they saw price increases," said Sigit Kumala, AISI deputy chairman for commerce.

"Today, prices are back to normal and more stable, so people are more confident to spend," Sigit said. He expressed hope that the rising sales trend would continue until the end of the year. AISI has set a sales target of 5.75 million motorcycles for this year.

Lower interest rates should also encourage more people to buy motorcycles, Sigit said. Bank Indonesia has cut its benchmark rate to 4.5 percent last month, citing efforts to overturn weak domestic consumption as its main reason.

Sales of motorcycles, which are very popular in Southeast Asia's biggest economy, are one of the key indicators of domestic consumption.

Between January and August this year, manufacturers sold and exported 4.06 million motorcycles, or 1.9 percent more than in the same period a year ago. Honda Motor still leads in sales, followed by Yamaha Motor and Suzuki, the data shows.