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.