From Government of Indonesia

Car Sales Seen Back to Record Levels

Car and truck sales are on track to return to record levels of more than half million units next year, powered by a recovery in the economy, the Indonesian Automotive Industry Association (Gaikindo) said.

Vehicle sales are expected to top more than 400,000 units this year, recovering from a more than 40% slump in 2006 when sales sagged to 318,883 units amid a jump in interest rates, it said, according to Reuters.

"Conducive economic conditions have helped the recovery in the automotive industry," Gaikindo official Johnny Darmawan said on Thursday (19/7/07) while opening a motor show.

"If the economic recovery continues, we are optimistic domestic sales can reach 500,000 units in 2008," he said, adding that exports of completely built-up vehicles may hit 50,000 units this year.

Vehicle sales hit a historic high of 533,910 units in 2005, when Indonesian interest rates were at a record low, but fell sharply after the government decided to hike fuel prices late that year.

Industry Minister Fahmi Idris said exports of completely-built-up (CBU) cars in the first five months of 2007 reached volume of around 21,000 units, up some 90% from the corresponding period last year, Asia Pulse reported.

Speaking at the opening of an international motor show, Idris said full-year CBU car exports would reach around 50,000 units, up by 50% compared to last year.
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