INDONESIA-TRANSPORT/MOTORCYCLES Indonesia’s appetite for motorcycles still big despite sales drop

Record ID: 142279

  • Title: INDONESIA-TRANSPORT/MOTORCYCLES Indonesia’s appetite for motorcycles still big despite sales drop
  • Date: 27th August 2015
  • Summary: JAKARTA, INDONESIA (RECENT - AUGUST 20, 2015) (REUTERS) SUN RISING VARIOUS OF BUSY STREET PACKING WITH CARS AND MOTORCYCLES MOTORCYCLE TIRES VARIOUS OF TRAFFIC POLICE DIRECTING TRAFFIC JUMIYATI SITTING ON HIS MOTORCYCLE JUMIYATI'S FACE REFLECTION AT SIDE-MIRROR (SOUNDBITE) (Bahasa Indonesia) MOTORCYCLE DRIVER, JUMIYATI SAYING: "I think more roads or flyovers should be built. (REPORTER: Is it dangerous if the motorcyclists become more and more?) Yes, of course. As you know now the road users increase rapidly, human and motor becoming more and more." (SOUNDBITE) (Bahasa Indonesia) MOTORCYCLIST, BENNY KUSUMA SAYING: "I have simple reason of why I am choosing motorcycle. Of course is to shorten the travel time compared to public transportations or cars, and also avoiding traffic jam." VARIOUS OF MOTORCYCLISTS ON STREET BANNER READING (English): "INDONESIA INTERNATIONAL MOTOR SHOW- THE ESSENCE OF MOTOR SHOW" VARIOUS OF VISITORS ENTERING EXHIBITION HALL VARIOUS OF CUSTOMERS AT THE BOOTH OF JAPANESE MOTORCYCLE BRAND, YAMAHA BANNER SHOWING ADVERTISEMENT OF 0 PERCENT INTEREST (SOUNDBITE) (Bahasa Indonesia) HEAD OF YAMAHA MOTOR SALES AND MARKETING OFFICER IN JAKARTA AREA, ANSARI KADIR SAYING: "We know that the economy is not so stable now, we can say the demand now is declining not only in motorcycle sales but also affecting the cars. We are trying to survive with new products and technology. Hopefully we can survive." LOGOS OF MOTORCYCLE BRANDS VARIOUS OF CUSTOMERS LOOKING AT MOTORCYCLES IN SHOWROOM JAKARTA, INDONESIA (RECENT - AUGUST 7, 2015) (REUTERS) MINISTER OF NATIONAL DEVELOPMENT PLANNING AND FORMER ECONOMY MINISTER, SOFYAN DJALIL ON AN INTERVIEW (SOUNDBITE) (English) FORMER ECONOMY MINISTER AND MINISTER OF NATIONAL DEVELOPMENT PLANNING, SOFYAN DJALIL SAYING: "The consumer product, the consumer goods start to pick up even though still very anecdotal evidence, right? The automobile actually it still doesn't move a lot, motorcycles start to... you know, not declining anymore at least it stable." JAKARTA, INDONESIA (AUGUST 25, 2015) (REUTERS) MOTORCYCLES LINED UP AT A WAREHOUSE VARIOUS OF WORKER TAKING INVOICES WORKERS MOVING MOTORCYCLE ONTO A PICKUP TRUCK PICKUP TRUCK LEAVING JAKARTA, INDONESIA (AUGUST 25, 2015) (REUTERS) MEMBER OF INDONESIA TRANSPORTATION SOCIETY, DEDDY HERLAMBANG WALKING ON STREET HERLAMBANG LISTENING TO QUESTION (SOUNDBITE) (Bahasa Indonesia) DIRECTOR OF INDONESIA TRANSPORTATION SOCIETY, DEDDY HERLAMBANG SAYING: "Firstly the government could decrease the number of motorcycles distributed on the main roads, and secondly government needs to revamp the public transportation such as trains and buses." VARIOUS OF MOTORCYCLES AND CARS ON ROAD
  • Embargoed: 11th September 2015 13:00
  • Keywords:
  • Location: Indonesia
  • Country: Indonesia
  • Topics: General
  • Reuters ID: LVA76TATGCP6PD2HO7FRXVIEM27J
  • Aspect Ratio: 16:9
  • Story Text: Jakarta has some of the most crowded roads in the world with the sheer number of vehicles on the streets testing the limits of the city's traffic infrastructure. Gridlock regularly frustrates the 10 million residents of the Indonesian capital.
    Many hop on their motorcycle to try beat the congestion. Although sales of the two-wheelers are down compared to last year, the motorcycle is still the favorite mode of transportation for getting through the chaos.
    Ojek, or motorcycle taxi, driver Jumiyati who zig-zags through the busy roads to pick up and drop off customers on a daily basis, urged the authorities to do more to resolve the problem.
    "I think more roads or flyovers should be built," he said as he waited for customers at a busy road side. Asked if he thought if it was dangerous if the number of motorcyclists grows, he said, "Yes, of course. As you know now the road users increase rapidly, human and motor becoming more and more."
    Despite that, others still feel the motorcycle is the most efficient way to get around.
    "I have simple reason of why I am choosing motorcycle. Of course is to shorten the travel time compared to public transportations or cars, and also avoiding traffic jam," said motorcyclist Benny Kusuma as he paused near a busy street in northern Jakarta.
    The Indonesia Motorcycle Industry Assocation (AISI) said motorcycle sales in Indonesia amounted to 421,838 in July 2015, down 21.1 percent from a year earlier. That's an improvement over June, when sales were down 23.5 percent and much better than May when sales were off 36.5 percent from May 2014.
    This year's Indonesia International Motor Show (IIMS) was packed with people checking out the latest automotive products including motorcycles.
    Ansari Kadir, the head of motor sales and marketing in the Jakarta area for Yamaha, says it's a challenging time for sales but he remains optimistic.
    "We know that the economy is not so stable now, we can say the demand now is declining not only in motorcycle sales but also affecting the cars. We are trying to survive with new products and technology. Hopefully we can survive," Kadir said at his busy promotion booth at the show.
    But former Economy Minister and Minister of National Development Planning, Sofyan Djalil said there are signs the vehicle market is improving.
    "The consumer product, the consumer goods start to pick up even though still very anecdotal evidence, right? The automobile actually it still doesn't move a lot, motorcycles start to... you know, not declining anymore at least it stable," Djalil said.
    Motorcycles sales, like car sales, are an important indicator of consumer confidence and domestic consumption.
    Indonesia's central bank in June issued a new regulation reducing the minimum down payment for auto and motorcycle purchases, in a bid to boost sales.
    According to the Indonesia Transport Society (MTI) 70 to 80 percent of vehicles in Indonesia's major cities are motorcycles. In Jakarta alone, there are more than 14 million units on the road everyday, data showed.
    MTI director Deddy Herlambang said the government could tackle the notorious traffic jams by curbing motorcycles in specific areas and improving public transportation quality.
    "Firstly the government could decrease the number of motorcycles distributed on the main roads, and secondly government needs to revamp the public transportation such as trains and buses," said Herlambang.
    On average over the last two to three years the number of vehicles in Jakarta has increased by 12 percent annually, MTI data showed.
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