Examining Indonesia`s Bicycle Market

Special Reports
The Fifth BRIC :
Examining Indonesia’s
Bicycle Market
Text & Photos: Editorial Dept.
S
outheast Asia has enjoyed
rapid economic growth in
recent years, and the region has
attracted many foreign investors
as result of its substantial domestic demand and market potential in the wake of ASEAN +1
and ASEAN +3. With a population of 244 million, Indonesia is
the largest economy in Southeast
Asia, and has an annual growth
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BMU 2012 Autumn
rate of 6%. The country enjoys
rich natural resources and a
youthful working population.
Domestic demand for bicycles is 7 million units annually.
The Indonesian government has
been aggressively promoting
economic and financial reforms
in recent years, and offers tax
credit to foreign investors.As
a result, the country’s overall
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economic performance has been
extraordinary. In order to better
understand Indonesia’s cycle industry and market, Wheel Gaint
conducted interviews with local
bicycle companies, visited the
Inabicycle Show, and looked into
Indonesia’s SNI national standards.
Special Reports
Located on both sides of
equator, Indonesia possesses tropical rain forest climate with high
temperature and high humidity.
There are only two seasons in the
year: the dry season (from May
to October) and the rainy season
(from November to April). The
annual average temperature is
above 25°C. The exchange rate
between the USD and IDR (rupiah) is approximately 1:9500.
Ethnic Diversity
Indonesia’s population of
244 million is growing at a rate
of 1.36% annually. The population is mostly concentrated on the
five major islands of Kalimantan,
Papua, Sumatra, Sulawesi, and
the most populous island of Java,
and 30 smaller island groups.
Indonesia has a wide range of
ethnic groups, with the predominant Javanese followed by the
Sundanese, Malay, and Chinese.
Indonesia is a youthful country
with an average age of 28 years.
There are numerous regional languages, but the official language
is Bahasa Indonesia. Islam is the
religion of 87% of the population,
followed by Christianity, Hinduism, and Buddhism. Indonesia
is greatly influenced by Islamic
culture, and Muslims can be seen
praying five times a day.
center of Indonesia. The population of the city is approximately
13 million and it is 670 square
kilometers in size. Because it is
ruled directly by the central government, Jakarta enjoys ample
funding and has more advanced
infrastructure than much of the
rest of the Indonesia; however,
the city’s infrastructure is still
underdeveloped compared to that
of nearby countries. The National
Monument, also known as Monas, is located in the center of
Merdeka Square and is a famous
tourist spot.
Indonesia’s other major cities include the second largest city,
Surabaya, which is the capital of
Jawa Timur. The city has bustling
commerce and a population of 3
million. Its famous tourist spots
include Bromo Volcano and the
largest zoo in Southeast Asia.
The third largest city is Medan,
which is the capital of Sumatera
Utara and has a population of 1.5
million.Bandung is the capital
of Tangkuban Perahu and is a
stronghold of the textile industry
with a population of one million.
Semarang is the capital of Jawa
Tengah and also has a population
of one million.
▲All-day traffic jams are a familiar sight in
Jakarta, and it’s common to see vendors selling
their goods between cars.
▲Indonesia’s hand-crafted batik has been
deemed a cultural heritage by UNESCO.
Overview of Major Cities
Well-known for its traffic
jams, Jakarta is the largest city
and the political and economic
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Special Reports
A Member of the G20 and
ASEAN +1
Wi t h a p o p u l a t i o n o f
244 million (ranking 4th in the
world), the largest economy in
Southeast Asian, and membership in the G20 and ASEAN
+1, Indonesia’s market potential
should not be overlooked. Fortyfour percent of Indonesia’s population is below the age of 24, and
the middle class, which has a low
debt burden and strong spending
ability, is expected to reach 100
million in two years. Indonesians
are very open to new technology, and the country boasts the
second-highest Blackberry ownership rate in the world. In the
wake of China and India, the
Indonesian economy has grown
rapidly. The country’s economic
growth rate is 6.1%, and is expected to reach 6.5% in 2012.
Morgan Stanley has stated that
Indonesia’s economy as a whole
will increase by 60% in the next
five years, reaching US$800 billion. In the wake of the ASEAN
10 + 1 agreement in 2010, the entire region now possesses a population of 1.9 billion and US$60
trillion in market potential.
Cycling is Centered
on Recreation and
Sport
Bicycles are mostly
used for recreational sport
and leisure, and are seldom
used for commuting. It is
very common to see people
riding their bikes in community parks on weekends.
The Indonesian government
has even implemented Carfree Days, when a number
of major roads in Jakarta
are closed to motor vehicles
and opened to cyclists on the
first and third Sunday every
month. Indonesia’s massive
population provides a strong
foundation for the development of its booming bicycle
industry. Bicycle demand in
Indonesia is estimated at 7
million units annually, and
this demand is expected to
grow steadily in the future.
Roughly one half of bikes
sold in Indonesia are imported, and the majority of imported bikes (3 million units)
are manufactured in China.
Phoenix Bicycle is the leading imported bicycle brand,
and is priced much lower
than Indonesian-made
bikes. In the high-end
markets, Specialized
(United Cycle is the
distributor in Indonesia)
and Giant are very wellknown locally; most other
well-known imported bikes
are sold on the Indonesian
market through distributors
in Singapore. Growing bicycle demand in Indonesia
is partially because of the
increasing number of people
who choose to use bicycles
as a means of transportation
due to growing awareness
of the global greenhouse effect and the need for energy
conservation and carbon reduction. Bicycles have also
become an important means
of recreation and part of a
fashionable lifestyle in Indonisia.
According to bicycle
importers, last year’s trendsetting single speed bikes
were extremely popular and
sales were phenomenal, but
their popularity quickly receded within the space of
a year. Although two new
hot types—cruisers and
folding bikes—have taken
▲The National Monument (Monas) is
a 132 meter-high tower in the middle of
Merdeka Square in Central Jakarta. It is
topped by a flame covered in gold leaf.
▲Children like to ride bicycles in the local
sports parks.
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BMU 2012 Autumn
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Special Reports
▲►The Senayan Trade Centre (STC) contains numerous specialty bicycle stores.
center stage this year, MTBs
nevertheless remain the market
mainstream. In general, the peak
bicycle sales season is between
March and August, and distribution mostly depends on bicycle
specialty stores. Due to rough
roads, and high unit prices, ebikes have not gained much of a
market in Indonesia, and people
still tend to ride motorcycles instead.
International brands can be
found in specialty shops around
Indonesia. Located in the center
of Jakarta, the Senayan Trade
Centre (STC) contains numerous
specialty stores carrying famous
bicycle brands in its basement,
and on the first floor and part of
the second floor. Similar bicycle
stores can also be found in the
MGK Bibezonu Kemayirn.
SNI Safety Requirements
Imported bicycles are subject to a 10% tariff in Indonesia, and on March 24, 2010 the
Indonesian government issued
a legal order enforcing the SNI
1049:2008 national standard. As
a result, all domestic and imported bicycles sold and distributed
in Indonesia must comply with
the Standard National Indonesia
(SNI). product safety requirements As a result of the new law,
bicycle manufacturers must obtain product certification carrying
the SNI mark and must comply
with SNI requirements. All bikes
(not including road bikes and
children’s bikes) must provide
quality test reports and pass requirements before an SNI sticker
can be issued. All bikes on the
market must have an SNI sticker
before they can be sold.
Because bicycles imported
from China are much cheaper
than locally-made bikes, this
new measure is seen as a trade
barrier protecting the local bicycle industry. Starting last year,
imported bikes cannot get past
Indonesian customs unless they
bear an SNI sticker. However, the
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government has granted a twoyear grace period to bicycles that
are already sold on the market.
According to the new regulations,
every different model of bike has
to be tested, which means that
the cost of cetifying each model
will increase by an average of
US$5,000-6,000 (the testing fee
is US$4,500 per bike, which
does not include food, lodging,
or transportation costs when personnel are sent to the plant in the
country of origin for testing and
instruction in filling out forms).
The enforcement of the SNI system creates a high barrier against
imported bikes, and will keep
many low-end bikes from getting
a foothold in the Indonesian market.
▲ mported bikes are required to display SNI
stickers.
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Special Reports
Three Leading Assembly Companies
The three leading bicycle assembly companies in Indonesia are Insera Sena, United Bike, and Wim
Cycle. These three companies are all owned by Indonesian overseas Chinese. United Bike is located in Bogor,
north of Jakarta, and both Wim Cycle and Insera Sena are in Surabaya. It takes 1.5 hours to get from Jakarta
to Surabaya by air.
Insera Sena
Insera Sena was established in 1989, and has an annual assembly capacity of more
than 500,000 bikes, including
city bikes, cross-country bikes,
MTBs, full suspension bikes,
front suspension bikes, downhill
bikes, and BMXs. The company
focuses on mid- and high-end
products; 65% of its bicycles
are mountain bikes, followed
by trekking and comfort bikes
(30%), and other types (5%).
Insera Sena’s bikes are sold in
more than 30 countries worldwide, and its main markets include Europe (80%) and Southeast Asia. The majority of Insera
Sena’s sales are of its company
brand Polygon. According to
President Weng Chung-liang,
Insera is short for Surabaya Bicycle Industries, and Sena is the
name of a famous puppet show
hero in Jawa Timur, and symbolizes power.
D u e t o t h e c o m p a n y ’s
growing sales and shortage of
plant space, a second plant was
constructed last year. The new
plant is close to the old one, and
covers 90,000 square meters.
The first phase occupies 25,000
square meters and has already
gone into operation. The two
plants have a total of 1,100 employees, and this year’s output is
expected to reach 700,000 bikes.
A s for domes tic s ales ,
Insera Sena has begun aggressively promoting its company
brand Polygon. The company
owns two flagship outlet stores
in Indonesia, 40 bicycle specialty
stores, and five specialty stores
in both Malaysia and Singapore.
In addition to its company brand
Polygon, Insera Sena
also distributes Dahon,
Marin, Tern, and Kona
bikes on the domestic
market. The company
uses IBDs as its main
channel and sells its
bikes via more than
200 dealers.
Insera Sena has
been able to achieve
the great success that it
enjoys today due to its
attention to quality, aggressive R&D, reliable
management, employee loyalty, and low-key
operation. At present,
the management de-
partment still remains in the old
plant, as does frame production
(daily production volume is approximately 350,000 frames). In
contrast, the new plant is used
mostly for assembly and coating.
The date of the complete move
from the old plant to the new one
has not yet been decided. Insera
Sena hopes to become a world
class bicycle manufacturer in the
near future, and plans to enter the
Chinese bicycle market in 2013.
▲Insera Sena’s new plant occupies 25,000 m2, and has an annual
assembly capacity of more than half a million bikes.
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Special Reports
▲Insera Sena President Chung-liang Weng is an
ethnic Chinese Indonesian. His reliable management
style ensures that the company remains a very lowkey operation.
▲Insera Sena Purchasing Manager Hui-an
Shih said this year’s output is expected to reach
700,000 bikes.
▲Insera Sena is one of two Shimano agents in
Indonesia.
▲Advanced and complete testing equipment.
▲Polygon is a leading brand on the Indonesia market.
▲The new plant is very organized and spacious.
▲Annual frame production amounts to 350,000 units.
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Special Reports
United Bike
The full name of United
Bike is PT. Terang Dunia Internusa. The company is familyowned, and was established
by the grandfather of the four
Mulyadi brothers who currently
operate this bicycle retailer.
The oldest brother is in charge
of the Ningbo plant, and the
second oldest is responsible
for after-market services. Andrew, the third brother, manages
administrative matters at the
company.The youngest, Henry,
is in charge of purchasing and
also manages PDI, the domestic
sales arm. United Bike has close
to 50 years of experience in the
bicycle industry. The company
focused on after-market business at an early date, and started
to design and produce bicycles
under the company brand name
United Bike in 1991. Because
sales grew very rapidly, a second
plant was completed in Sentul,
Bogor in 2010, in order to meet
the demand of the Asian and
European markets. The second
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BMU 2012 Autumn
plant has 250 employees and
provides 40,000 square meters of
assembly space.
United Bike possesses extensive production equipment for
welding, coating, painting and
heat treatment; its equipment is
all up-to-date and its management
is very good. According to President Andrew Mulyadi, the company’s current annual production
capacity is one million units, of
which the Jakarta plant, which
has 450 employees, accounts
for 70% and the Bogor plant
accounts for 30%. The types assembled on the company’s lines
include MTBs, BMX, city bikes,
e-bikes, and children’s bikes. Except for lower-end frames, front
forks, and wheels, which are produced by the company’s plants,
the company depends on imports
for all remaining parts. Eighty
percent of the company’s bikes
are sold on the domestic market,
including the two brands United
(mid-/high-end bikes) and Jenio
(beginners’ bikes). The other
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20% of the company’s bikes are
exported(OEM production); the
US is the largest export market.
United Bike has also set up a
plant in Ningbo, China, which
is under the management of the
oldest brother. The Ningbo plant
mostly produces children’s bikes
and parts, and the parts are used
in the company’s plant in Indonesia for bicycle assembly.
Untied became the agent
for American company Specialized three years ago, and is in
charge of its sales in Indonesia.
The majority of the company’s
bikes are assembled in Indonesia.
United currently has 350 retailers in Indonesia, and 10 Specialized concept stores, with average
unit price ranging from US$700
to several thousand dollars. According to President Mulyadi, the
company’s goal is to set up more
United Premium Stores (UPS)
providing consumers a brandnew bicycle purchasing experience.
Special Reports
▲United Bike has grown rapidly, thanks to the hard work of the four Mulyadi
brothers. Shown are PDI President Henry Mulyadi (left) and United Bike
President Andrew Mulyadi (right). PDI is a subsidiary of United Bike, and
is in charge of sales for the domestic market.
▲United Bike GM Arifin Tedja (left) is young and ambitious. He handles the
domestic sales for Specialized, with annual sales of 11,000 bikes. Shown at
right is Hank Kao, GM of SRAM Asia and tour leader for this business trip.
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Special Reports
Wim Cycle
Wim Cycle is one of the
three leading bicycle firms in Indonesia, and its full name is PT
Wijaya Indonesia Makmur Bicycle Industries. At present, Wim
Cycle focuses on exporting bicycles, and the company’s bikes
are sold in more than 20 countries worldwide. Wim Cycle sells
mostly children’s bikes (70%),
but it also sells other bikes and
parts, and steel bikes account for
80% of its products. According
to the young and talented GM
Huang Chun-chi, Wim Cycle was
established in the center of Surabaya by founder Hendra Widjaja
in 1972, and the company started
out manufacturing bicycle parts.
The company’s original name
was CV Indonesia Makmur, but
when it expanded its scale of
operation in 1972, it changed its
name to PT Wijaya Indonesia
Makmur Bicycle Industries, and
started to get involved in bicycle
assembly.
Wim Cycle began producing bicycles for the domestic
market in 1984. Beginning in
1987, the company began to export bicycles to Saudi Arabia,
Germany, the Netherlands, Italy,
Greece, and other European
countries. In 1991, Wim Cycle
started to supply bicycles to mass
merchant chains in American
such as Toys R Us, Walmart, and
Target. The company also extended its export scope to major
Canadian mass merchants such
as Canadian Tire, Zellers, Sears,
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BMU 2012 Autumn
▲Shown at far left is Wim Cycle GM Chun-chi Huang. Anne Widjaja (middle) is the daughter of the
Wim Cycle president, and she is very active in the company. Shown at far right is Anne’s Japanese
husband Yoshiho Sekita. They fell in love while studying Mandarin in Beijing, and have now settled
down in Indonesia.
and Home Hardware in 1994. In
2008, the factory received ISO
9001 international certification.
Currently, Wim Cycle is an OEM
for numerous well-known international bicycle companies, such
as Loekie, Sparta, Mongoose,
Kawasaki, Schwinn, Reebok, and
other mass market brand names.
In addition to its up-to-date
plant on a 15-hectare site and
extensive production equipment,
Wim Cycle also has 1,000 employees and comprehensive production lines. Some parts are also
manufactured in the plant, such
as steel bike frames, front forks,
saddles, mudguards, handlebars,
and bike baskets. Hsu Sheng is
the main supplier for aluminum
frames.
The company pays very
close attention to quality, beginning from the purchase of raw
materials. In order to improve
product quality and production
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efficiency, Wim Cycle has continued to upgrade its production
equipment. The company’s R&D
department pays great attention
to ergonomics and comfort, and
uses up-to-date testing equipment. Wim Cycle places emphasis on strict quality control and
a low defect rate. The company
has a fine image and reputation in
the domestic market; it won “Superbrand” honors from 2005 to
2009, and was acclaimed one of
Indonesia’s “Top Brands” from
2007 to 2009. It has also won the
“Kids Top Brand” award, and is
included among Indonesia’s 250
leading brands. In addition, Wim
Cycle has licensed many wellknown international cartoon characters for use on its children’s
bikes, including Barbie, Disney,
and Warner Brothers characters.
Wim is also the Indonesian agent
for GT and Cove.
Special Reports
Wim Cycle sells its products through over 2,000 dealers
in Indonesia. The company holds
races, has organized a team, and
also sponsors many outstanding
riders. It has built a 40,000 m²
Supercross area at Surabaya that
will provide cross country and
extreme riding courses. Apart
from holding two or three competitions each month, Wim makes
the area available to the public
for riding.
▲Taiwanese bicycle industry members visited Wim Cycle's Supercross track, which occupies an area
of 40,000 m2. The track is very similar in concept to VP President Victor Lin’s Iron Hill Cycling Sport
Village in Taiwan.
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Special Reports
Taiwan-Owned Parts Manufacturers
P.T. Chin Haur
Chin Haur was one of the
first Taiwanese firms to invest
in Indonesia. After noticing the
promise of Southeast Asia’s bicycle parts market, as well as the
large internal market in Indonesia, Chin Hau established a plant
at Tangerang in Jakarta, in 1990.
Because Indonesian laws stated
that foreign investors could only
hold a maximum of 50% of the
equity in an Indonesian firm,
Chin Hau had to find local overseas Chinese to provide joint
investment of US$6 million. Two
years later, however, the Indonesian government revised its laws
and allowed foreign investors
to hold 100% equity. Chin Hau
President J. C. Lin then bought
out the local shareholders, and
increased investment by US$10
million in 1998.
Chin Haur’s plant occupies
26,000 square meters, and is located on a 56,000 square meter
site. This plant employs over 300
people, produces headsets, BB
sets, and hubs, and has an annual
capacity of approximately six
million sets. It chiefly supplies
its parts to Southeast Asia, Indonesia, Latin America, and Italy.
Annual sales revenue is roughly
NT$400 million (around US$13.3
million). One building at the
plant is chiefly used to assemble
Tianjin Fuji-Da bikes. According
to President J. C. Lin, due to the
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BMU 2012 Autumn
E U ’s l o n g - t e r m
imposition of antidumping duties on
Chinese bicycles,
Tianjin Fuji-Da’s
bikes were not
competitive in the
European market,
and the Chin Haur ▲From left: Chin Haur Shenzhen plant GM Pang-Chiu Wang (who was
p l a n t r e m a i n e d on vacation in Indonesia during Wheel Giant’s visit), President J. C.
Lin, and Indonesia plant GM Chao-hsi Kuo (who has lived in Indonesia
half idle. Because for more than 20 years).
of this situation,
six years ago Chin
Hau began leasing its plant to
Tianjin Fuji-Da for
bicycle assembly,
while Chin Haur
remained close
▲GM Chao-hsi Kuo, production manager Chung-shih Liao, and sales
at hand to supply manger Chin-tao Huang are the major management team at Chin Haur’s
p a r t s . T h i s a r - Indonesia plant.
rangement soon became a winunions are asking for an increase
win strategic alliance. Fuji-Da’s
of 40%. Indonesian wages averIndonesian plant employs apage around US$220 per month,
proximately 350 persons, and can
which is far less than in China or
assemble 700,000 bikes annually;
Vietnam. Thanks to favorable tarit had already assembled 300,000
iff rates in the EU, as well as the
bikes by the end of May this year.
steadily growing domestic marHaving chosen to invest
ket and the vast Southeast Asian
in Indonesia, J. C. Lin feels that
market, Indonesian bicycle parts
there is plentiful local manpower,
enjoy bright future prospects. As
and employees are easygoing.
a consequence, Chin Haur plans
However, there is a growing trend
to invest approximately US$4
toward unionization, labor conmillion within the next two or
sciousness is increasing, strikes
three years as it acquires new maare not unknown, and wages are
chinery and increases its degree
rising steadily. This year the Inof automation.
donesian government announced
a 26% hike in salaries, and
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Special Reports
Tianjin Fuji-Da’
s Indonesian assembly lines
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P.T. Marwi
Marwi established a plant
at Tangerang in Jakarta in 1992,
near the P.T. Chin Haur plant,
and celebrated its 20th anniversary this year. The Marwi plant is
located on a 56,200 square meter
site, and is approximately 26 km
from the certer of Jakarta. The
plant is the group’s largest manufacturing facility, and has 500
employees. Monthly wages average roughly US$250. The plant
consists of eight buildings, which
include powder painting, anodization, foaming, saddle, testing,
and warehouse areas. The plant
chiefly produces low- and midend pedals and saddles; monthly
capacity is 1.5 million sets, and
the plant can produce as many as
1.8 million sets per month during the peak season. Products are
chiefly exported to Europe, North
America, Latin America, and
Japan. In addition, the plant also
produces bottle cages, seat post
clamps, and quick releases. Marwi plans to add electrical coating
equipment in the future, but it
currently entrusts this processing
to Chin Haur.
According to President
Patrick Pai, a plant in Indonesia
has all of Southeast Asia as its
home market, and there are vast
opportunities. However, because
local raw materials do not have
reliable quality, the biggest drawback is that most materials must
still be imported from Taiwan,
China, and other countries. As a
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BMU 2012 Autumn
▲Marwi GM James Huang was
a great local tour guide who
spent lot of time arranging the
itinerary for this business tour.
▲Marwi President Patrick Pai is
very passionate and hospitable.
This was the first time he had so
many guests visit his plant, so he
was very pleased. He shared many
valuable experiences, and gave
expensive civet coffee as gifts.
▲Marwi Indonesia plant
deputy manager Shihchuan Hsiao has been in
charge of the company’s
Indonesia plant for over
19 years.
▲Marwi established a plant at Tangerang in Jakarta in 1992, and this year marks its 20th anniversary.
The Marwi plant occupies eight facilities over an area of 56,200 m2, and includes painting, testing, and
warehouse areas.
result, firms that invest in Indonesia solely to assemble bikes
for export will inevitably run
into trouble, and the chief way to
ensure survival is to emphasize
sales to all the ASEAN countries.
Secondly, exchange rate risk has
to be considered. When Marwi
had just arrived in Indonesia,
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the USD to rupiah exchange rate
was 1 : 1650. However, because
of political instability, the rupiah depreciated to 1 : 17,000 at
one point. But thanks to relative
political and economic stability
during the last two years, the exchange rate has remained in the
range of 1 : 9500 – 1 : 9900.
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The Inabicycle Show
Held in 2011, the first
Inabicycle show showcased
over 120 bicycle brands
and parts and accessories
makers. The show attracted
20,000 buyers and visitors.
This year’s 2nd Inabicycle
show featured bicycles, golf
products, exercise gear, fitness equipment, and athletic
products. The exhibition was
twice as large the previous
year, but Indonesia’s three
major bicycle assembly
firms did not attend. Exhibiting firms primarily consisted
of importers and distributors.
Major brands on display included Benz, Merida, Ghost,
Bianchi, and UCC. Although
last year’s exhibition area
was only half the size of this
year’s, crowds were thick
at this year’s show. And although single-speed bikes
were all the rage last year,
they had lost most of their
luster by this year, and the
bicycle market mostly focused on fitness and leisure.
In general, the Indonesian
market is still young and has
plenty of room for development if firms are willing to
put in long-term effort.
▲Four trade shows were held simultaneously, and a popular opening ceremony was held in the afternoon.
▲ Benz displayed high-end bicycles and accessories at their Inabicycle booth. This year marked the second
time the company has attended the show.
▲This electric MTB equipped with lithium battery sells for €25,555. The manufacturer imported parts
from Japan and China, and assembled the bike in Indonesia.
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BMU 2012 Autumn
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▲This was the second time Chien King attended the Inabicycle show. Chien
King President D. M. Liang (second left) said many people go cycling in the
park on the weekends. Cheng’s GM Jason Chiang (far right) has spent many
years developing the Indonesia market.
▲Agogo GM Sen-biao Lai (center) and the team from his Indonesian
agent.
▲8Fun attended the show, and is devoted to developing the ▲This was the first time Shun Shing attended
Indonesian market. Sales manager Liu-chin Chiu is on the right.
the show, and the company was pleased with their
results. Manager Chi-jui Hung and his wife Yu-han
Huang are keen to explore emerging markets.
▲StepDragon sales executive
Johnny Lee visited the show to
explore the Indonesia bike market.
Importers
Bike Colony is one of Indonesia’s main bicycle importers.
It was established in 2009, and is
a subsidiary of the large channel
firm Ace, which is the Indonesian
agent for brands including Merida, Bianchi, Schwinn, Mongoose,
BBB, and Camelbak. Ace has 60
stores in Indonesia, and mainly
sells hardware and household
goods. Bike Colony sells 3,000
bicycles annually, at an average
unit price of US$300. According
to purchasing manager Dion Romano, bicycle sales volume and
revenue both grew by 20% last
year, but have remained almost
flat this year, and the poor economic conditions have hurt sales
of high-priced bikes the most. Although single-speed bikes were
in the spotlight last year, this year
road bikes, cruisers, and small
folding bikes are attracting the
most interest. In addition, the fact
that MTBs and city bikes now
need SNI certification stickers
has made selling imported bikes
even tougher, and it is expected
that many bike shops will close
during the next couple of years.
www.biketaiwan.com
▲Bike Colony purchasing manager Dion
Romano said that fixed-gear bikes were popular
last year. However, road bikes, cruisers, and
folding bikes are attracting the most interest this
year.
2012 Autumn BMU
47
Special Reports
UCC bikes were exhibited
by their Indonesia distributor,
Butik Sepeda, which is also the
distributor for Ghost, Shimano,
SRAM, Easton, FSA, Maxxis,
Tektro, SR Suntour, First Bike,
and Zixtro cycle bags. In addition, Happy MTB, which has
been around for 20 years, has
close to 40 dealers in Indonesia,
and is distributor for such brands
as Velo, Prologo, Cateye, Maxxis, Ranking, and Infini. Happy
MTB’s subsidiary FoldX imports
mostly folding bikes, including
its own brand FoldX (produced
in cooperation with Shenzhen
Xilianfa), Police, Element, the
Japanese brand Doppelganger,
and the American brands Hummer and Chevrolet. According to
CEO Hendra, folding bikes in the
US$100-200 price range sell the
best.
Numerous whole bicycle
brands and parts and accessories
brands are sold in Indonesia by
their Singapore distributors. For
instance, the Singapore trading company Pharmatic Trading
(bicycle department) mainly engages in wholesale distribution,
and sells Alligator, Aster, and
the Chinese C Originals brands.
Pharmatic has over 100 dealers
in Singapore, and is active in the
Singapore, Indonesia, and Malaysia markets. The company’s sales
in Indonesia and Malaysia have
grown rapidly during the past two
years, but while it sells mostly
high-end products in Indonesia,
it focuses on low-/mid-end products in the Malaysian market.
48
BMU 2012 Autumn
▲UCC’s Indonesian distributor Butik Sepeda had a very large exhibition space. The displayed
products were hugely popular, and attracted a lot of attention.
▲Bike Colony is the agent for brands including Merida, Bianchi, Schwinn, and Mongoose, and has
annual sales of 340,000 bicycles.
▲Bike Colony’s major sales channel is the home appliance retailer Ace Hardware. Merida and
Bianchi bicycles are on prominent display at this Ace store.
www.biketaiwan.com
Special Reports
Armor and Chengs are the
Taiwanese trading companies that
have the most experience in the
Indonesian market. Armor President Lin Mao-ching first came to
Indonesia in 1976, when the USD
to rupiah exchange rate was 1 :
400. He currently has a close partnership with supply and assembly
plants. Many parts and accessories
manufacturers sell their products in the Indonesian market via
Chengs.
Indonesia possesses rich natural resources, a youthful working
population, political stability, and
access to the vast ASEAN market.
Thanks to its role as a springboard
to the Southeast Asian, European
Union, and even Middle Eastern
and African markets, Indonesia
has become an important part of
many bicycle companies’ global
deployment plans.
▲Jakarta Deputy Mayor Syahrul Efendi SH. MM (left) is a strong supporter of the Indonesian bicycle
industry. He and Henry Mulyadi of United Bike (right) recently went cycling together in France.
▲Happy MTB is the agent for brands including Velo, Prologo, Cateye, Maxxis, Ranking, and Infini.
Michale Tan (left) is the son of the company president.
▲Civet coffee
is rare and
expensive in
Indonesia.
Civets eat ripe
coffee berries
for their fleshy
fruit; the digestive
process frees amino
acids in the undigested
coffee beans, which the
civets then defecate. After gathering, thorough
washing, and brewing, these beans yield an
aromatic coffee with very little bitterness.
▲ Indonesian importer Butik Sepeda represents many well-known brands, and is also the agent for
UCC. Zixtro vice manager Tell Tan is at far left, and Butik Sepeda president Yaman Salikun is second
from the right.
www.biketaiwan.com
2012 Autumn BMU
49