Motorcycle sales in Indonesia increased 16.0 percent month-on-month (m/m) to 711,857 units in September 2014. Sigit Kumala, Chairman for Commercial Affairs at the Indonesian Motorcycle Association (AISI), said that improved motorcycle sales are caused by the start of the harvest season in several regions across Southeast Asia’s largest economy. Successful harvests have put downward pressure on commodity prices and thus have a positive impact on Indonesian’s purchasing power.

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Exports of Indonesian-made cars and motorcycles are expected to grow sharply in 2014 and 2015, although coming from a low base and rather insignificant compared to domestic sales. These rising export figures are made possible by enhanced domestic production capacity. Indonesian exports of motorcycles are expected to rise 122 percent to 60,000 units in 2014, while exports of cars are expected to rise 93 percent to 386,000 units in 2015. Although there is still a long road to go, Indonesia is increasing its status in these industries.

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Car sales in Indonesia fell 17 percent (month-on-month) in July 2014 to 91 thousand vehicles, while motorcycle sales plunged 28 percent to 539,171 over the same period. The main reason for this sharp decline is the limited number of working days in July due to the Lebaran holiday (also known as Idul Fitri and which marks the end of the Islamic fasting month of Ramadan). As a consequence of this public holiday, production of cars and motorcycles declined, and less cars and motorcycles could be distributed to Indonesian dealers (wholesalers).

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Indonesian motorcycle sales are forecast to rise in 2014 according to Sigit Kumala, Chairman of the Indonesian Motorcycle Manufacturers Association (AISI). Although sales in the first four months of 2014 (January-April), only grew 3.8 percent (year-on-year), sales are expected to grow more markedly in the second quarter of the year. However, sales may be curbed in May due to the presence of four public holidays. In May, consumers are expected to spend money on recreational activities instead of a new motorcycle.

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Car and motorcycle sales increased rapidly in Indonesia throughout March 2014, primarily due to an improved distribution network. In the previous months, heavy rains amid a peak of the rainy season (causing floods in various parts of Indonesia) resulted in the postponement of car and motorcycle purchases. Data from the Association of Indonesian Automotive Industries (Gaikindo) indicated that car sales surged 18 percent (year-on-year, yoy) to 113,277 units in March 2014, while motorcycle sales grew 9.2 percent (yoy) to 728,820 units.

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Motorcycle sales in Indonesia rose 20 percent (year-on-year) to 661,282 units in June 2013. The head of the commercial department of the Indonesian Motorcycle Industry Association (AISI), Sigit Kumala, said that sales peak in June and July because of the Lebaran tradition that follows the holy fasting month (which starts tomorrow). After this fasting month, many Indonesians go back to their places of birth for a couple of days. Motorcycles are one of the modes of transportation used for this short holiday.

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Indonesian motorcycle sales in February only increased by 0.51 percent to 653,357 units compared to the previous month. This figure is regarded as a rather disappointing amount by the Indonesian Motorcycle Industry Association (AISI). A spokesman of the association said that Indonesians are postponing the purchase of a motorcycle, and instead spend their income on daily consumer goods.

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The Indonesian Motorcycle Industry Association (AISI) says Indonesia's motorcycle exports should rise by 50 percent (y/y) to around 342,000 units in 2016. Gunadi Sindhuwinata, General Chairman of the AISI, stated that Indonesia's motorcycle exports have been impressive so far this year, rising 76 percent (y/y) to 97,778 units in the January-April 2016 period. This impressive export performance is supported by the choice of several global motorcycle manufacturers to make Indonesia their production hub for specific motorcycles.

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Domestic sales of motorcycles in Indonesia fell 11 percent to 580,288 units in January 2014. The main reason for this decline in the first month of the year were severe floods brought about by high rainfall amid a peak of the rainy season. These weather conditions disrupted the distribution of motorcycles from factories to dealers. As a result, all motorcycle brands recorded lower sales figures according to data released by the Indonesian Motorcycle Industry Association (Aisi). However, more factors were at play.

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Domestic sales of motorcycles in Indonesia are expected to have fallen by 20 percent to 550,000 in December 2013 compared to the previous month (688,527). According to the Chairman of the commercial department of the Indonesian Motorcycle Industry Association (AISI), Sigit Kumala, this decline is not the result of slowing demand for motorcycles but due to the limited amount of working days amid the Christmas and New Year holidays. This then led to less production and distribution of motorcycles to Indonesian dealers.

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Along with the increasing purchasing power of Indonesian people, purchases of motor vehicles (such as motorcycles and cars) in Indonesia, continue to grow. However, based on data from the Indonesian Motorcycle Industry Association (AISI), motorcycle sales fell by 12 percent in 2012, from 8.01 million units in 2011 to 7.06 million units in 2012. One reason behind this fall was the implementation of new government policy regarding down payment requirements (which have been imposed on vehicle loans since mid-2012).

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