The Development of Motorcycle Industry in Indonesia

Motorcycle industry in Indonesia has been developed in the last 15 years, and is approaching the final stage in the coming 5 years. In general, the localization program of motorcycle parts could be considered relatively successful due to several reasons eg: the limited number of brands, the relatively less complicated components (as compared to automobile), and the oligopolistic nature of motorcycle industry in the world. On the other side, much lower production volume (as compared to the past) due to economic recession has caused higher production cost per unit as a consequent of lower economies of scale. Considering above condition and the fact that the mayority of population could not afford to buy automobile, the motorcycle's industrial development will still be very promising.

As soon as the complete process of manufacturing will be achieved in the coming 5 years, the Indonesian motorcycle industries could be a significant exporter. However, the realization of above target requires the effort to improve the industry in general; among other are the capability to master engineering and production of tools, dies & other required equipment; the increase in buying power of the Indonesian customers and a “Coherent” industrial climate & policy.