Jakarta, CNBC Indonesia – The domestic bicycle industry had experienced its glory in the early days of the Covid-19 pandemic. The boom of bicycles, including folding bicycles, even surprised domestic manufacturers, because there was no prediction that cycling would become a mass hobby at that time. However, in fact the production of bicycles in the country can not speak much.
“The market could reach 8 million last year. Now it’s probably around 7.5 million. Local is at most 4 million, that’s the most yes, the rest is imported. Imports are usually more dominant,” said Chairman of the Indonesian Bicycle Industry Association (AIPI) Rudiyono to CNBC Indonesia, Tuesday (7/6/21).
However, hope for local producers grew after the government issued Regulation of the Minister of Trade (Permendag) Number 68 of 2020 concerning the provisions for the Import of Footwear, Electronics, and Two-Wheel and Three-Wheel Bikes, the aim of which is to suppress imports of these goods entering Indonesia. The results are starting to show.
“Maybe there was already Covid-19 closed, so the market was filled domestically. Usually in normal times before we only get 2 million units, even though the need is 6 million,” he explained.
In recent times, the trend of riding has faded. On the other hand, imported bicycles have started to re-enter Indonesia. As a result, supply and demand are not proportional, the abundance of stock makes prices tend to decrease. This is also recognized by importers, especially the decline in prices at the merchant level.
“The range (price) is down 20%-30%, that’s a reality that must be accepted. Goods that take a long time to arrive at wholesalers end up selling goods, the important thing is to catch up cashflow. The price of capital is thrown so that turnover occurs. The market adapts to circumstances. But the demand is still there,” said the Chairman of the Indonesian Bicycle Entrepreneurs Association (Apsindo) Eko Wibowo Utomo to CNBC Indonesia, Friday (4/6).
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