Gaikindo lowers 2002 car sales target

Gaikindo lowers 2002 car sales target

The Jakarta Post, Jakarta

The Association of Indonesian Automotive Industries (Gaikindo)
on Friday said that the 2002 domestic car sales target would be
revised to around 280,000 units, compared with the previous
target of 340,000 units.

Gaikindo Chairman Bambang Trisulo said the revision was made
amid persistent uncertainties in the domestic political
condition.

"We (Gaikindo) previously believed that the political
condition under President Megawati Soekarnoputri would be solid
for the economy, but it turns out there are a number of social
problems causing unrest in several regions," he told The Jakarta
Post.

He said that sales numbers were very sensitive to political
stability or a lack thereof.

"Consumers will delay buying cars if such uncertainties
(violent conflicts) in Aceh, and Poso in Central Sulawesi
continue," he said.

Bambang said the decline in the rupiah against the U.S. dollar
will also be a negative factor that will create consumer caution
in making new purchases as car prices had increased.

The rupiah closed at 10,170. per U.S. dollar on Friday.

Bambang estimated that car sales this year would only reach
295,000 units.

"We are hoping that sales can surpass the 17,000 mark this
month (December)," he said.

Sales through September had reached 283,000, he added.

Based on Gaikindo's data, car sales plunged to 58,303 in 1998
due to the economic crisis compared with 386,691 units in 1997.

The year 2000 saw some improvement with 300,964 vehicles sold
as the economy slowly recovered.