Motorcycle Sales to Bounce Back Next Year, Industry Executive Says


JUNE 11, 2015

Badung, Bali. Indonesia’s motorcycle market is expected to bounce back next year as government spending on infrastructure projects and an expected recovery in commodity prices take hold, an industry executive said in Bali on Wednesday.

“The economic growth will surely boost the domestic motorcycle sales, especially if the government is successful in executing the infrastructure development acceleration,” said Johannes Loman, the vice president of Astra Honda Motor, the local manufacturer of the Japanese brand’s motorbikes.

Producers sold 2.1 million motorcycles in the first four months of 2015, down 21 percent from the same period a year earlier.

The Indonesian Motorcycle Industry Association (AISI), which counts Astra Honda among its members, slashed its target for motorcycle sales this year to seven million units, from the previous target 7.9 million, which was what the industry achieved last year.

But Johannes was optimistic of a recovery next year, saying the current general economic slowdown, on the back of slumping coal, rubber and palm oil prices, was temporary.

He said that the sheer size of the Indonesian population, at around 250 million, would ensure continued growth in motorbike sales until at least 2018.

Investor Daily