The Indonesian Motorcycle Industry Association (AISI) forecast the sales of motorcycles to drop by 15% in the second quarter following the implementation of Bank Indonesia regulation on minimum down payment for the purchases of vehicles.

AISI data shows motorcycles sales reached 649,000 units, slightly weaker than 652,000 a year ago. The total sales of motorcycles reached 7.1 million units last year, down by 11.2% compared to 8.03 million in 2011.

Starting June last year, the central bank required minimum down payments of 25% for motorcycle loans from banks, 30% for auto loans, and 20% for commercial vehicles.

Responding to the rise in the sales of low cost-green cars (LCGCs), AISI head for commerce Sigit Kumala said it would not affect motorcycle sales, citing different market segment.

"Many of the middle-level consumers still cannot afford LCGC, unless the price is IDR 50 million (US$ 5,200)," he said.