Brompton Bike Prices in Indonesia Higher Than in Singapore – Here’s Why
Jakarta, Indonesia – Brompton bicycle prices in Indonesia are currently more expensive than in Singapore, wiht a price difference reaching up to Rp. 15 million (approximately $950 USD) per unit, according to recent reports. Though, this gap is narrowing as Indonesian prices have decreased.
Eko Wibowo, Chairman of the Indonesian Bicycle Entrepreneurs Association (APSINDO), stated that the price difference has shrunk to around Rp. 2 million (approximately $125 USD) due to falling prices in Indonesia. He attributes the previously high margin to distributor target margins and limited availability during the pandemic.
Key Factors Driving Higher Indonesian Prices:
import Duties & Taxes: A important contributor to the higher cost is the imposition of import duties and taxes on bicycles imported from the United Kingdom, where Brompton is manufactured. These include a 25% import duty, 12% Value Added Tax (VAT), and 5-7.5% Income Tax (PPH), alongside costs for Indonesian National Standards (SNI) certification and other fees.
Distributor Margins: Indonesian distributors have historically factored in higher target margins, contributing to the price difference.
* Illegal Imports: APSINDO has expressed concern over the impact of illegal imports from Singapore,which undercut official distributors who comply with tax regulations. This creates an uneven playing field where legally imported Bromptons are priced higher than those