Indonesian Political, Business & Finance News

More motorists shift to motorcycles

| Source: JP

More motorists shift to motorcycles

Abdul Khalik, The Jakarta Post, Jakarta

As a civil servant at the office of the Ministry of Tourism in
Central Jakarta, Cecep, 32, who lives with his family in a small
house in Ciputat, Tangerang, decided he needed a motorcycle to
reduce his monthly expenses.

"I can't afford bus fares because I have to change buses three
times to get to my office," he told The Jakarta Post.

He has had to spend at least Rp 20,000 (US$2) a day on bus
fares following the fuel price hike on Oct. 1.

Air-conditioned buses, for instance, raised their fares to Rp
4,800 from Rp 2,500 while angkot (public minivan) increased their
fares by at least 50 percent.

"A liter of premium is more than enough to take me to and from
the office in one day. Besides, I can also take my children to
school first before going to the office," Cecep said.

Another commuter, Sutopo, 42, an employee of a private bank in
Central Jakarta, who lives with his wife and children in Bekasi,
West Java decided also to switch to a motorcycle.

"I used to drive my car to the office. Now, I can't afford to
buy fuel and pay road tolls. I will be late if I take a bus or
angkot. So, I have no choice but to sell my car and buy a
motorcycle," he told the Post.

Sutopo said that he spent at least Rp 50,000 a day on fuel and
tolls after the price hike.

He said that although using a motorcycle was more tiring and
riskier, he had to sacrifice convenience for the sake of his
family.

Many Jakartans have made the same choice as Cecep and Sutopo.

The Indonesian Motorcycle Industry Association recorded a
sharp increase in motorcycle sales -- from 474,000 units in July
to 505,787 units in August -- when the government started to
float the idea of raising fuel prices.

As of August, a total of 3,435,289 units had been sold this
year by motorcycle companies, up by 25 percent compared to the
same period last year.

"The increase in motorcycle sales is definitely influenced by
the fuel price hike. People, who had planned to buy a low-priced
car, for instance, would buy a motorcycle instead because of the
fuel price hike," Halim Gunadi, president director of Tunas
Finance, a car and motorcycle financing company, told the Post.

He said that sales figure in October would likely be higher as
residents would have felt the impact of the increase in bus fares
and most basic commodities.

However, both Cecep and Sutopo were surprised to find that the
price of motorcycles had also soared.

"I was late. The price has gone up. With Rp 750,000 as a down
payment, I have to pay Rp 540,000 in monthly installments for 35
months. My friend bought one last month and he didn't have to pay
a down payment and pays only Rp 496,000 in monthly installments,"
Cecep said.

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