The country’s domestic car sales are estimated to reach about 1.05 million units this year, Fitch added. According to the Indonesian Automotive Industry Association (Gaikindo), car sales in the first seven months of 2016 rose 2 percent year-on-year to 594,514 units. Gaikindo also estimated car sales will rise by at least 5 percent this year.

PT Toyota Astra Motor (TAM) continued to lead with a 52 percent market share through leading brands Toyota and Daihatsu, and the low-cost-green-car segment also gained momentum, contributing 18 percent to total car sales. Fitch added that Indonesia will maintain GDP growth of 5.1 percent year-on-year in 2016, supported by monetary policy easing, government programmes to accelerate infrastructure spending, and a tax amnesty plan. The government expects GDP to grow by 5.3 percent in 2016, compared with 2015 GDP growth of 4.8 percent.

APMEN News, Oct 2016