Auto association expects robust sales this year<\/p>\n
JAKARTA (JP): The Association of Indonesian Automotive
\nIndustries (Gaikindo), said this year's cars sales could reach
\n160,000 units, almost twice last year's figure, but warned that
\ncontinued social unrest could hamper the growth.<\/p>\n
Gaikindo's chairman, Bambang Trisulo, said on Saturday that
\nsigns of recovery in some business sectors would certainly mean a
\nhigher demand for new cars.<\/p>\n
\"From an optimistic point of view, some even expect car sales
\nto reach 200,000,\" he told The Jakarta Post.<\/p>\n
However, he said predictions of an improved car market stemmed
\nfrom the assumption that social unrest would not escalate to
\nrampant riots.<\/p>\n
According to him, security issues had become the main concern
\nof the automotive industry.<\/p>\n
\"We are not worried that much about the economy, it's the
\nissue of security that worries us,\" he said.<\/p>\n
Consumers, he said, would likely adopt a wait-and-see stance
\nas social riots kept unsettling Indonesia.<\/p>\n
However, Bambang was confident that the process of economic
\nrecovery would continue on the right track and further push up
\nthe automotive demand.<\/p>\n
Car sales plunged to 53,303 units in 1998 when the crisis hit
\nits peak, from 386,691 in 1997, but began to rise the following
\nyear to 94,023, in line with the recovery in some business
\nsectors.<\/p>\n
In 1998, car prices nearly tripled, whereas people's
\npurchasing power dropped by more than half as the rupiah
\ndepreciated to almost 80 percent against the U.S dollar.<\/p>\n
Because of the country's political situation in 1998,
\nparticularly the general election in July, Gaikindo had predicted
\ncar sales for 1999 would reach only 60,000. Nevertheless, the
\nautomotive industry saw returning confidence that year, as total
\ncar sales almost doubled.<\/p>\n
Bambang said a stable rupiah rate and declining banking
\ninterest rates would result in a higher demand.<\/p>\n
\"Banks are continuing to rechannel car loans,\" he added.<\/p>\n
The loan facility had been reintroduced by banks and finance
\ncompanies early last year, after a total halt throughout 1998 due
\nto the then severe condition of the financial sector.<\/p>\n
Even Standard Chartered Bank, a major foreign bank operating
\nin the country, launched a similar lending facility.<\/p>\n
He expected that should the economy continue to improve,
\nIndonesia would regain its yearly car sales figures of the
\nprecrisis level, which was between 200,000 to 300,000 units a
\nyear.<\/p>\n
\"By the year 2003, we can expect sales to bounce back to their
\nprecrisis level,\" Bambang said.<\/p>\n
He said by then, Indonesia would enter the ASEAN Free Trade
\nArea (AFTA) for which the automotive industry must prepare itself
\nto face new opportunities and threats.<\/p>\n
He cited Thailand and Malaysia as prospective markets, with
\nboth having forecasted their respective car sales to range
\nbetween 300,000 and 400,000 for this year. (03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/auto-association-expects-robust-sales-this-year-1447893297",
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