Benelli Motor Indonesia (BMI) said the company is interested to open a manufacturing factory in Indonesia. However, the decision was held by Geely as the parent company of Benelli Motor.
Steven Kentjana Putra, director, BMI said Geely had conducted a feasibility study to explore opportunities for the establishment of factories in Indonesia. However, according to him, there are still a number of obstacles.
"As Benelli Motor Indonesia, we want Geely to invest here. At that time, a feasibility study had been conducted by KPMJ, and several other consultants. However, the study came with the conclusion that regulations in Indonesia are rather difficult for motorcycles above 250 cc,"he said on the sidelines of the 2019 IIMS Motorbike Expo exhibition.
He explained that the sales tax regulation on luxury goods (PPnBM) is currently still an obstacle for developing motorcycle industry with large engine capacity. According to him, this makes the price of Benelli motorcycles in Indonesia not as competitive as in other countries.
According to him, the tax factor which hoisted the price was high enough that it made Geely still reluctant to invest in Indonesia. In fact, he said that Indonesia became one of the countries that was seriously considered as their investment destination.
He said that for the Southeast Asian region, Geely was also aiming at several other countries, namely Thailand and Malaysia. However, until now Geely has not decided where to invest.
Although it is an Italian brand, Benelli's ownership is under the auspices of Zhejiang Qianjiang Motorcycle Group Co. coming from China. This company is part of Geely Group which also owns Volvo and Lotus Cars.