JAKARTA (TheInsiderStories) — Indonesia has experienced a motorcycle exports boost which will assist in the reduction of it’s trade balance deficit. A Japanese motorcycle manufacturer, PT Yamaha Motor Manufacturing Indonesia, has just recorded 1.5 million units for export from it’s Indonesian factory.
“We will later launch the export for 1.5 million units. A huge number,” said Indonesia’s President Joko Widodo before the Yamaha Indonesia exports launch celebration in Jakarta, on Monday (12/03).
This year, Yamaha exports are estimated to be 338,000 unit of motorcycles to 45 countries. The number rocketed more than a thousand percent from only 23,000 units in 2014.
However, there is still a wide gap between Yamaha Indonesia’s exports and domestic sales. Indonesian factory production supplies the export market only around 25 percent of their total production while domestic market supply is 75 percent.
Widodo stressed that Indonesia keeps searching for investment opportunities with big export, large investment, and high local content and stressed that Yamaha motorcycle has around 93-94 percent local content. Raw material imports will cause a trade balance deficit, he added.
He mentioned that Indonesia faces a big problem over its balance of trade. During January-October 2018, Indonesia recorded a US$ 5.5 billion trade balance deficit. In October only, the trade deficit was US$ 1.82 billion, while September reported a slight surplus of US$ 227 million.
Widodo also expects a greater investment by Yamaha in Indonesia, considering that Yamaha has established and done business in Indonesia since 1974.
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