M

otorcycles likely will remain the favorite mode of transportation for most travelers over the current Idul Fitri annual exodus despite numerous free facilities offered by both government institutions and the private sector.

Sartono, 34, who works as an optical shop attendant in Sidoarjo, East Java, decided to buy a new motorcycle worth Rp 18 million (US$2106) to ride to his hometown in Ngawi, East Java, even though his old one was still working fine.

“This new motorcycle is proof of my hard work here to show to my family. I will think about my ability to pay for the installments later,” said Sartono, who earns Rp 1 million a month, on Thursday.

Bambang Murtiroso, a motorcycle seller in Surabaya, East Java, said sales were up 30 percent ahead of Idul Fitri, which falls on Aug. 30-31. “This has been an annual phenomenon because using motorcycles is considered more economical, flexible, practical and fast,” he said.

The decrease in the interest rate for motorcycle leasing during the second quarter of 2011, according to Bambang, has further driven up sales. The interest rate, he said, has decreased to 21 percent from 24 percent per annum.

“It’s very easy for people to purchase a new motorcycle now. They don’t even need a down payment to buy, just installments,” he said.

Data from the Association of Indonesian Financing Companies (APPI) showed that 85 percent of consumers purchased motorcycles in installments, with the remainder paying in cash. This is one reason why automotive products account for 90 percent of the activities of financing companies in the country.

In 2008, for example, automotive product financing amounted for Rp 83.2 trillion, or an increase of 23 percent compared to the previous year. In 2009, the figure grew only 10 percent due to the global economic downturn. Last year’s figure was Rp 109.3 trillion.

The increase in the sale of motorcycles in East Java reportedly was also due to the increase in the economic growth of the province and decrease in the unemployment rate.

Surabaya City Police traffic division registration and identification unit head Adj. Comr. Siswanto said that the increase in the sale of motorcycles in the region had led to an increase in the number of driving license applications.

“During normal days we only serve about 500 applicants a day. Prior to Idul Fitri we receive up to 1,000 proposals. So don’t be surprised to see a long queue of applicants here,” he said.

East Java Transportation and Traffic Agency head Wachid Wahyudi said he expected to see an increase of 10.2 percent in the number of motorcycles passing through the province.

He added that he expected to see nearly 300,000 motorcycles per day pass through the province in the two weeks surrounding the Idul Fitri holidays.