From Government of Indonesia

Tire Makers to Lift 2007 Output by 10%

Tire makers plan to increase their output by nearly 10% this year to meet demand from the domestic automotive sector, a senior industry official said on Tuesday (3/4/07).

The country's tire manufacturers are expected to produce 45 million car tires this year, up from 41 million in 2006, Aziz Pane, chairman of the Indonesian Tire Producers Association, told Reuters.

"Domestic demand is growing as the number of cars is increasing," said Pane, who was speaking on the sidelines of a meeting with an Egyptian trade delegation.

Domestic sales are expected to rise by up to 25% this year following falls in interest rates.

Sales hit a record high of 533,920 units in 2005, before plunging to 318,883 units last year. Analysts and industry experts predict sales to reach between 350,000 and 400,000 units this year.

Indonesia is the world's second largest natural rubber producer after Thailand. It exports car tires to more than 140 countries across the world, with its main markets being the Middle East and some African countries.
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