Indonesia

Indonesia has one of the largest populations in the region, spread across many islands. From a motorcycle industry point of view it resembles Thailand, due to the low level of pre-existing industrialization and similar government policies. Japanese manufacturers entered the Indonesian market in the 70s approximately 10 years after they entered Thailand and after the political strife in Indonesia during the 60s. Japanese suppliers accompanied the principal makers though more local suppliers exist than in Thailand.

The popular models are of the under bone style. Many Chinese manufacturers see Indonesia as a target market for production or CKD/SKD assembly and the economic influence of the Chinese Diaspora in Indonesia has undoubtedly facilitated this. The Japanese products are compliant with gas emissions regulations and after many years of efficiency efforts, the price gap compared to Chinese products has been significantly reduced. Japanese build quality is superior and as customers consider the used asset value of a motorcycle as important, this enhances the value proposition of the Japanese products. The Indonesian motorcycle industry is subordinate to Japanese manufacturers’ global strategy.