Fuel Subsidy Up, Selling Motor Road Continues

164351_force5The government has planned to raise prices of subsidized fuel. The price increase also was on the horizon. But it turns out, the negative effects of the subsidized fuel price increase will take effect only briefly in the national motorcycle sales.

Chairman of the Indonesian Motorcycle Industry Association (AISI) Commercial areas Sigit Kumala admitted that the subsidized fuel price increase will affect all industries, but the effect was not large.

The influence is definitely there, but pengarus indirectly. Was too small. Actually to watch the effect of the fuel price hike, rise in inflation. Inflation if large, too large effect,” said Sigit.

Because, when the great inflation, the price of food will rise. And when that happens, consumers will prefer to meet their basic needs first.

But I think the effect of the fuel price hike this time is not like 2005. At that time the market was shocked almost 6 months since the price increase of nearly 100 percent. But now, I am feeling the effect about 2-3 months, Sigit straightforward.

That’s why, according to Sigit AISI will not revise targets motorcycle sales in Indonesia this year is estimated at a number between 6.4 to 6.7 million.

Until last month it was 3.2 million units. Months can be 600 thousand. So it‘s been about 3.8 million units. Lack meaning only about 2.6 million. In the remaining months of this year, the number could be 6.4 million achieved, “due diligence.