The motorcycle business is moving forward. Data from the Indonesian Motorcycle Industry Association (AISI) showed that domestic motorcycle sales in July and August 2025 increased compared to the previous months.
July sales reached 587,048 units, up from 505,350 units in May and 509,326 units in June. In August, sales were still high but not as high as in July, at 578,041 units. These figures show the consistent growth of motorcycle sales in the domestic market, signaling that people's purchasing power is improving.
The increase in domestic sales in the third quarter of 2025 was allegedly the effect of Bank Indonesia's (BI) monetary policy, which successively lowered the benchmark interest rate or BI Rate. This policy encouraged credit growth and increased public consumption.
BI Rate data shows a continuous downward trend, from 6.00% in December 2024 to 5.75% from January to March 2025. The decline continued to reach 5.50% in May and June 2025; 5.25% in July 2025; 5.00% in August 2025; and finally to 4.75% in September 2025.
The successive lowering of benchmark interest rates has a direct impact on borrowing costs, including motor vehicle loans. Lower interest rates make motorcycle installments more affordable, thus stimulating demand from consumers.
The increase in sales in July and August - after a period of rate cuts in May, June, and July - reinforces the correlation between BI policy and the improvement in the purchasing power of the automotive sector.
In addition to the domestic market, motorcycle export performance also showed impressive numbers, reinforcing the positive trend in the two-wheeled automotive industry. Export data includes completely built up (CBU),completely knocked down (CKD), andexport part by part categories.
In 2025, the cumulative export volume of CBU was recorded at 366,231 units, CKD exports reached 5,547,053 units, and the most dominant was part by part exports with a volume of 88,420,752 units. This large scale of exports emphasizes Indonesia's role as an important motorcycle production base in the region.
Monetary policy has successfully created a more conducive environment for consumers to make purchasing decisions. The increase in motorcycle sales after the lowering of BI's benchmark interest rate is a momentum for recovery in Indonesia's motorcycle industry that will continue in the second half of 2025.
This momentum provides optimism for industry players, not only for the Indonesian motorcycle industry, but also for other industries.
