Gaikindo doubts 2001 sales target possible

Gaikindo doubts 2001 sales target possible

Adianto P. Simamora, The Jakarta Post, Jakarta

The Association of Indonesian Automotive Industries (Gaikindo)
expressed pessimism on Tuesday about the 2001 domestic car sales
target of 300,000 units, following the recent fall of the rupiah
against the U.S. dollar.

"The decline in the rupiah against the U.S. dollar will become
a negative factor affecting car sales targets this year," Bambang
Trisulo, the chairman of Gaikindo told reporters.

The rupiah dropped to as low as Rp10,500 per U.S dollar on
Monday amid growing anti-U.S. sentiment following the U.S.-led
attacks against Afghanistan.

The local unit, however, managed to recover slightly to 10,010
on Tuesday, compared with Monday's close of 10,163.

"If the rupiah remains below 10,000 against the U.S. dollar in
the remaining months of this year, it will be difficult to meet
the car sales target of 300,000 units," he said.

Gaikindo said total car sales to September were 227,000 units.

Bambang said that several local automotive producers were now
decreasing their car prices amid tough market conditions, but the
fall in the rupiah might continue to discourage people from
buying cars.

Bambang also said that the association might have to revise
its 2002 car sales target of 320,000 units if the military
campaign between the U.S. and Afghanistan lasts for a longer
period, as it would certainly lead to a global economic
recession.

"The global economic slowdown will also pressure the 2002 car
sales targets," he said.