Local companies offer cheap, stylish motorbike models

Rendi A. Witular, The Jakarta Post, Jakarta

Local motorcycle makers, who are newcomers to the industry, are set to tap the growing domestic motorcycle market by selling cheaper and more stylish products.

"The market is very promising," said Iman Sukirman, technical manager of Semarang-based PT Wideco Automotive Industry, which produces scooters under the local brand, Grand Surya Elite.

Another company called PT Jetwin International Motorindo, which is championing its 250cc motorbike is also confident that it can penetrate the local market, long dominated by Japanese brands.

"We are specializing in making Harley Davidson-like motorcycles because the market demand is promising. We also want to build our image by marketing ourselves as an Indonesian brand," said marketing staff Soe Rachmawati.

Jetwin, which has set up a manufacturing plant in Sunter, North Jakarta, is selling its motorbikes under the brandname of Regal Raptor for Rp 21.8 million (US$2,422).

The company is aiming to sell between 2,000 and 3,000 motorcycles per month.

Analysts say the domestic motorcycle market is very promising, driven by strong domestic consumption.

In the first semester of this year, sales reached 1.06 million units, a near 50 percent increase from the same period last year. The market for the full year is estimated at 2.5 million units.

The promising market prompted Rini MS Soewandi, now Minister of Industry and Trade, to set up her own motorcycle manufacturing plant called PT Semesta Citra Motorindo in 2000.

The company produces motorcycles under the Kanzen brandname has a target to sell 3,000 units per month.

Although the local content of the motorbikes is still only between 10 and 20 percent, they are optimistic that one day it might reach 100 percent. The local content currently consists of tires and rubber parts, while the machinery, frame and electronic components are all imported from South Korea, Taiwan or even China.

The Kanzen bike claims to have a local content of around 45 percent.

Can they compete with products made in China that also sell at lower prices than Japanese brands.

"We are confident we can win the market," Iman said, pointing out that his company pledges to produce better quality products at a cheaper price.

The cost of the Grand Surya scooter, for instance, ranges from Rp 12 million to Rp 16 million, which is Rp 5 million cheaper than the Italian-made Piaggio scooter.