Changes in commodity prices traditionally have a big impact on sales of cars and motorcycles in the key commodity-producing islands of Indonesia such as Kalimantan and Sumatra. When commodity prices rice, then earnings and purchasing power in these regions strengthen, especially among local farmers. This usually translates to higher car and motorcycle sales. However, when commodity prices decline then we see the opposite phenomenon.

Besides the positive impact of rising commodity prices, AISI Chairman Sindhuwinata said government-led infrastructure development across Indonesia has also supported rising motorcycle sales in the first month of 2017. Regarding full-year 2017, the AISI targets to see a 5 percent (y/y) increase in motorcycle sales in Indonesia.

In full-year 2016 domestic motorcycle sales in Indonesia reached a total of 5.9 million units, down 9.2 percent (y/y) from 6.48 million motorcycle sales in the preceding year.

Based on data from the AISI, Honda continues to dominate Indonesia's motorcycle market. In January 2017 a total of 368,739 Honda motorcycles were sold in Indonesia, hence commanding a 77.8 percent market share. Astra Honda Motor released its Honda CB500F in a new ("more masculine and aggressive") color. This contributed to rising Honda sales in the first month of 2017. On second position comes Yamaha with a 19.9 percent market share.

Motorcycle Sales in Indonesia:

• Total Motorcycle Sales
473,879 100%
 - Honda 368,739 77.8%
 - Yamaha
 94,117 19.9%
 - Kawasaki
  7,370  1.6%
 - Suzuki   3,511  0.7%

Source: Indonesian Motorcycle Industry Association (AISI)