Indonesia Targets Motorcycle Exports to African Market
Jakarta – Indonesian motorcycle exports in January-August 2023 were recorded at 377,412 units, down 23.51 percent compared to the same period last year.
Secretary General of the Indonesian Motorcycle Industry Association (AISI), Hari Budianto stated the decline in exports was caused by several factors, one of which was the shift in exports from Completely Built Up (CBU) to Completely Knocked Down (CKD).
"Exports have decreased for CBU by 24 percent year on year, but actually there are also exports that are not recorded in the form of CKD," said Budianto, recently.
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Budianto remarked that CKD exports are not recorded in AISI data because they are still in the discussion stage of data management. However, he ensured that the export figure increased compared to last year.
The increase in the number of CKD exports, Hari said, is due to the increasing number of countries that assemble motorcycles domestically and only order components from Indonesia.
"All countries are the same, they want to develop their domestic industry. For example, the Philippines, they have also assembled," Budianto said.
Although Indonesia's motorcycle exports have decreased, Budianto said there are still new market opportunities that can be worked on, one is Africa.
"The main opportunities are in Africa, Southern Europe, in Latin America. There are quite a lot of opportunities close to us in ASEAN and South Asia,"
One of the obstacles to Indonesian motorcycle exports is the different standards in each country.
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AISI together with the government is working to implement harmonization of motorcycle standards to improve the competitiveness of Indonesian products in the global market, he explained.
"So, there are Euro standards for example. We are trying all kinds, from our members in partnership with the government how to implement harmonization of national standards," he continued.
This year, AISI targets Indonesian motorcycle exports to reach 550,000 units. However, this target could increase if the government provides greater support to the motorcycle industry.
