JAKARTA, Indonesia – Bicycle manufacturer PT Terang Dunia Internusa recently opened a second 40,000 m² plant in Sentul near Bogor (south of Jakarta on West Java). With the new facility the company increases its production capacity to 1.3 million bikes and intends to grow its export to Europe.
As well as expanding its exports to Europe, PT Terang Dunia Internusa goal with the new facility is also to increase its share of the home market. The company operates in the Indonesian bike market under the brand name United. According to a recent local newspaper report quoting sales and marketing manager Janto Hasan, PT Terang Dunia Internusa intends to grow its share of the home market to 40%. This will require half of the production total of the new factory. The other half is destined for export to Europe. Currently the planned annual production total of the new factory stands at 300,000 units, but it can be increased to 1.3 million bikes.
Currently there are three main local players operating on the Indonesian market. As well as PT Terang Dunia Internusa, the other two are Malaysian-Indonesian Polygon, and Indonesian Wim Cycle. It is estimated that annual production at Polygon stands at 550,000 units, while Wim Cycle produces around 100,000 units per year. According to the Indonesian bicycle industry association (AIPI) the annual volume of the bike market of the country, with its 240 million population; stands at about 6 million bicycles. Half of that total is imported from overseas. Demand is projected to grow by 20% per year as the market for cycling grows.
Indonesia’s Largest International Bike Exhibition
Hoping to play a big role in expanding the bike market in Indonesia is the country’s largest international bike exhibition – INABICYCLE 2011, at the Jakarta Convention Center 26 – 29 May 2011. The exhibition is jointly organized by Indonesia Bicycle Committee and Wcpitra Exhibition and supported by the Government of Jakarta Province. The exhibition is expected to be participated by +100 exhibitors and visited by 35.000 visitors from the general public, importers, traders, and bicycle communities and cyclists. More information on the event can be found online at: www.indonesiabicycleshow.com