Although it’s still the third-largest powered two-wheeler market in the world after China and India, sales in Indonesia are falling rapidly.
According to Indonesian motorcycle industry association AISI, sales in 2015 are set to drop by about 13% to 6.8 million units, against an earlier target of 7.7 million units. Indigenous manufacturers led by Astra Honda are now hurriedly cutting back production in the face of record dealer inventory levels.
“We see this adjustment as important because community buying power has declined,” said AISI president Gunadi Sindhuwinata, pointing to high domestic interest rates and currency depreciation as principal inhibitors of consumer demand.