For example, Japan-based Yamaha Motor Company Limited declared Indonesia its production base for the manufacturing of the R25, MT-25 and NMAX Yamaha motorcycles. Another reason that explains why Indonesia's motorcycle exports have been rising sharply in the first four months of the year is because motorcycle transportation is becoming increasingly popular in a number of European countries.

The main export destinations for Indonesian motorcycles are Europe, the Philippines, East Timor, and the Middle East. Up to the present Indonesia does not have big competitors in terms of motorcycle exports, reflecting the nation's strong competitiveness in this export segment. By the year 2019 AISI targets to see Indonesia's motorcycle export figure rising to 900,000 - 1,000,000 units per year. Sindhuwinata added that prices of domestically-sold motorcycles and exported units do not differ markedly.

Indonesian Motorcycle Exports:

Yamaha 56,681
Honda 21,575
Suzuki 12,043
TVS  4,476
Kawasaki  3,003

Source: Indonesian Motorcycle Industry Association (AISI)

However, domestic sales of motorcycles remain bleak. In April 2016, sales fell 8.9 percent (y/y) to 478,036 units. In the past 18 months, there were 15 months in which Indonesian motorcycle sales contracted. This is a concern because motorcycle sales are a key indicator to measure consumption (purchasing power and consumer confidence), particularly in Indonesia where motorcycles are extremely popular. Indonesia's April motorcycle sales were led by Honda Motor, Yamaha Motor and Kawasaki. The AISI targets a 6.5 million motorcycle sales figure in full-year 2016. In 2015 Indonesian motorcycle sales declined 18 percent (y/y) to 6.4 million.

Indonesia's Domestic Motorcycle Sales:

Domestic Sales 2,129,818 1,982,504   -6.9%

Source: Indonesian Motorcycle Industry Association (AISI)