Rupiah Weakens, Will the Price of New Motorcycles Rise?

JAKARTA — The depreciation of the rupiah against the United States dollar is drawing the attention of Indonesia’s motorcycle industry, with concerns it could raise production costs and, ultimately, motorcycle prices. Several manufacturers say they are still monitoring exchange-rate developments before deciding on price adjustments.

2W Sales & Marketing Department Head PT Suzuki Indomobil Sales Teuku Agha said the rupiah’s weakness generally has the potential to affect the automotive industry. Nonetheless, Suzuki says it is continuing to monitor exchange-rate stability before taking further steps. ‘For the Suzuki two-wheeler line, we are still watching the stability of the exchange-rate movement. If fluctuations continue and significantly affect the cost structure of production, there remains a possibility of price adjustments proportionally,’ he said.

Chief Executive Officer Alva Purbaya Pantja also said that Alva is currently focused on maintaining price stability for electric motorcycles amid the rupiah’s weakness. ‘So far we have not increased motorcycle prices. So we will see how developments unfold. When discussing prices, of course we consider everything—from component costs to the USD impact,’ he said.

Additionally, exchange-rate changes could affect logistics costs and the price of components marketed in Indonesia.