Indonesian motorcycle sales fell drastically by 43.57 percent in 2020 compared a year ago due to the COVID-19 pandemic - Photo by President Office

JAKARTA (TheInsiderStories) – Indonesian motorcycle sales fell drastically by 43.57 percent in 2020 compared a year ago due to the COVID-19 pandemic, said the association on Monday (01/25). The wholesales two-wheel sales recorded 4.36 million units. With details of domestic sales of 3,660,616 units and exports of 700,392 units.

According to the chairman Indonesian Motorcycle Industry Association (AISI), Sigit Kumala, for this year, the local producers set a sales target to rises around 15 percent from last year to 4.3 million units based on the government GDP targets of 5 percent. He hopes that the distribution of vaccines will also be a positive stimulus to boost the automotive sales.

Last year, Bank Indonesia (BI) has relaxed the down payment limit of motorcycle from 10 percent to zero percent to help the weak of purchasing power and the consumer loan market. The and unproductive three-wheeled vehicles or more also cut to zero percent from the original 5 percent since Oct. 1, 2020.

The association of auto producers (GAIKINDO) reported that national car sales rose by 9.9 percent to 53,884 units in November from the previous month and fell by 41 percent compared to a year ago. In October, the national auto sales recorded 49,018 units and in November 2019 sold 91,240 units.

Based on the organization’ data, the auto sales for the 11 months period reached 474,908 units, a sharp drop by 50 percent compared to the same period in 2019 about 942,462 units. Throughout 2019, the national car sales reached 1.03 million units.

The secretary general of the association, Kukuh Kumara, emphasized, that the pandemic had an impact on the cessation of automotive dealers and factory operations. He considered that the recovery of the pandemic was the key to the revival of car production and sales also the support of the funding sector considering that more than 70 percent of car purchases using this facility.

BI governor, Perry Warjiyo, had said the decision has been made to boost the public consumption and to accelerates the economic growth of the country. Based on the central bank data, the inflation remains low due to weak domestic demand.

During last year, the Consumer Price Index (CPI) recorded a deflation of 1.68 percent due to low purchasing power, the lowest level in history, said the statistic bureau today. The amount also lower than previous year 2.72 percent, said the deputy, Setianto, on January (01/04).

In detail, he explained, the inflation rate was recorded 8.36 percent in 2014. Then, in 2015 lowered to 3.35 percent, in 2016 was 3.02 percent, in 2017 slightly increased to 3.61 percent, and in 2018 fell to 3.13 percent.

In December alone, there was an inflation of 0.45 percent with the CPI of 105.68. The number was higher than November, which was recorded at 0.28 percent and October at 0.07 percent. Annually, CPI inflation was recorded at a low 1.54 percent from a year ago, down from 1.96 percent in the previous month.

He conveyed, the inflation occurred due to an increase in most of the expenditure group prices. The low inflation is influenced by weak domestic demand due to the COVID-19, the consistency of BI policies in directing inflation expectations, and maintained exchange rate stability, he adds.

Written by Editorial Staff, Email: theinsiderstories@gmail.com