Harley-Davidson To Wind Down Operations In Indonesia

JAKARTA, Feb 13 (Bernama) -- U.S. motorcycle producer Harley-Davidson's distributors, PT Mabua Harley-Davidson and PT Mabua Motor Indonesia are winding down their operations in stages and has stopped importing Harley-Davidson motorcycles since Dec 31 last year. Mugi Reksa Abadi (MRA) chief executive officer Soetikno Soedirjo said the company decided to stop distributing and selling Harley Davidson motorcycles as the flagging economy due to external factors had affected its sales. MRA is the biggest shareholder of PT Mabua Harley-Davidson. "We are closing down business due to plunging sales at all Mabua outlets. We recorded peak sales in 2013 with 991 motorcycles sold, but sales gradually fell to 471 in 2014 and 483 in 2015," he was quoted by Media Indonesia as saying. Mabua Harley-Davidson Indonesia president Djonnie Rahmat said the company was saddled by tax increases and weakening rupiah which had put pressure on the import of the high-powered American motorcycles. Mabua Harley-Davidson Indonesia has nine dealerships in five cities in Indonesia and they would also be closing down. He said 500 workers would be laid off, while several permanent employees would be given new tasks in its after-sales service operations at authorised workshop. PT Mabua Harley-Davidson marketing and sales director Irvino Edwardly said the company was currently holding stock clearance sales of Harley-Davidson motorcycles and accessories at discounted prices at its Ciputat Raya Jakarta showroom. PT Mabua is the second company to stop distributing and selling imported vehicles in Indonesia after Ford Motor Company's subsidiary, PT Ford Motor Indonesia. --BERNAMA