Demand for Cars in Indonesia Increases

In Indonesia, the demand for cars has continued to increase over the past two months and it is expected to increase with a sales projection of 55,000 - 60,000 units this month, a businessman said. "The domestic car market continues to improve. In January sales reached 52,000 units and in February 55,000 units," associate chairman of the Indonesian Motor Vehicle Industries Association (Gaikindo), Johnny Darmawan said here on Sunday.

He said he was convinced sales in March would reach 57,000 units because domestic demand for cars was now showing an upward trend. "I predict car sales this year would reach an average of 50,000 units per month. So, unless in case of economic and political instability, car sales could reach 600,000 units this year," he said.

He also expressed conviction that Indonesia would appear as the biggest car market in Southeast Asia, defeating Thailand, if political stability could be maintained and the government did not impose a progressive tax. "Car market in Thailand has begun to reach a weak point due to political instability while Indonesia still has the big potentials," Johnny who is also president director of PT Toyota Astra Motor, said.