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Big bike sales still face hard time in next three years
In crisis: Soetikno Soedarjo, owner of MRA Holding, the main stockholder in PT Mabua Harley-Davidson, answers questions from the media at the Mabua Harley-Davidson building in Pondok Pinang, South Jakarta, on Wednesday
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span class="inline inline-center">In crisis: Soetikno Soedarjo, owner of MRA Holding, the main stockholder in PT Mabua Harley-Davidson, answers questions from the media at the Mabua Harley-Davidson building in Pondok Pinang, South Jakarta, on Wednesday.
With current taxation levels and the weak value of the rupiah, big bike dealerships will still face a hard time in the next five years, says the owner of Mabua Harley-Davidson.
"We recorded a loss in 2014 just after record sales in 2013. We were calculating the three-year business projections and are still bleeding. It's hard, but we need to stop," Soetikno Soedarjo, owner of PT Mabua Harley-Davidson, said on Wednesday.
With a 40 percent decrease of the value of the rupiah against the US dollar and high government taxation of luxury goods, prices in 2014 were suddenly twice that of 2013, he said, adding that the losses were even bigger in 2015.
The government already abolished a rule about single brand ownership (Agen Tunggal Pemegang Merek ' ATPM) in 2013. Afterwards an automotive brand could be distributed cooperatively by more than one company.
"There will be a possibility of Mabua being replaced by several smaller dealers in the future," Mabua Harley Davidson president director Djonnie Rahmat said on Wednesday.
With the Mabua dealership closing, Asia-Pacific Harley-Davidson is currently looking for a new dealer in Indonesia. Some names such as Garansindo ' the distributor of the Fiat-Chrysler Group ' are rumored to be submitting proposals.
"We hope it will not take too much time. Before Mabua ends its service in June 2016, hopefully there will be a new dealer. Some of our friends are also submitting the dealership proposal," the chief of the Jakarta chapter of the Harley Owner Group (HOG), Ignatius Sahat Manalu, told thejakartapost.com. (bbn)
