The Indonesian Motorcycle Industry Association, or AISI, expects sales of two-wheelers in the archipelago to remain grim, as household consumption growth is likely to remain stagnant this year. (Reuters Photo/Darren Whiteside)

Motorcycle Industry Association Expects Grim Motorcycle Sales in 2017

BY :RIDHO SYUKRA

JANUARY 03, 2017

Jakarta. The Indonesian Motorcycle Industry Association, or AISI, expects sales of two-wheelers in the archipelago to remain grim, as household consumption growth is likely to remain stagnant this year.

Motorcycle sales in the country are forecast to remain flat in 2017, at about 6 million units, the same figure projected last year, AISI chairman, Gunadi Sindhuwinata, told reporters last week. AISI has not released a sales report for 2016.

This is in stark contrast to the association's sentiments in October, when Gunadi told reporters that he expects motorcycle sales to reach at least 6.6 million units in 2017, up 10 percent from last year.

Gunadi said the government needs to push for stronger policies to spur infrastructure development in the country, in order to encourage greater automotive sales.

AISI's latest data showed motorcycle sales in the January-November period stood at 5,493,521 units, or a 7.8 percent decline from the same period the year prior.

Indonesia's economy weakened in the third quarter, amid stagnant growth in household consumption, weaker exports and slower government spending.  Indonesia's economy grew 5.02 percent in July-September in compariosn to the same period the year prior. This was weaker than the 5.19 percent growth in the second quarter.

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