One person was killed and two others injured when a driver allegedly lost control of his vehicle and crashed into two motorcycles on Jalan Lauser in Kebayoran Baru, South Jakarta, on Saturday night (12/03), an official said. (Antara Photo/Hafidz Mubarak A.)

Indonesian Motorcycle Industry Expects Sales to Inch Up This Year

BY :TABITA DIELA

MARCH 07, 2016

Jakarta. The Indonesian Motorcycle Industry Association, or AISI, expects sales of two-wheelers in the archipelago to increase slightly this year on the back of a better economic outlook, the association's president said over the weekend.

AISI chairman Gunadi Sindhuwinata told reporters that he expects motorcycle sales to reach at least 6.5 million units in 2016, up from 6.48 million last year.

"The 6.5 million is a moderate number. We hope the number will be bigger," he said. "Our economy is leaning toward an improvement. The economy grows at more than 5 percent and it is nearing 6 percent, which is a good indicator. However, the problem is that we need time for the second half of this year. We'll see the improvement in the second semester or after July."

Gunadi added however, that Indonesia's motorcycle exports were expected to soar this year as the international market starts to shift toward smaller motorcycles for practical reasons.

"Our export markets are the countries that used to buy big motorcycles. [...] There is a new trend in developed countries. People there use motorcycles for short distance travels, such as going to the market. We will focus on countries such as Germany, the Netherlands, Belgium and the United Kingdom," he said.

According to Gunadi, Indonesia's motorcycle exports rose nearly 500 percent last year to 228,229 units compared to a year earlier. He expects sales to rise by another 50 percent, to around 300,000 units this year.

Last year motorcycle manufacturer Honda exported 26,199 units; Suzuki 25,558 units, TVS 16,195 units, Kawasaki 9,057 units and Yamaha 151,220 units.

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