Domestic car sales of Indonesia reduced by 13 percent in the first quarter of 2019 from the same period in 2018, according to the Association of Indonesian Automotive Manufacturers (Gaikindo).
Sales from January to March was recorded at 253,863 units, a major reduction from 2018’s figure of 292,031 units.
March sales reduced 11.4 percent year-on-year (yoy) to 90,189 units from 101,797.
In early January, Gaikindo forecast Indonesia’s automotive industry to deal with stagnating growth, owing to high loan interest rates, mild inflation and stagnant purchasing power.
The association had set a sales target of 1.1 million units in 2019 – still same from its 2018 target and even less than last year’s sales realization of 1.15 million units.
Sales reduced regardless of policymakers’ efforts to increase financing for cars through the Financial Services Authority Regulation No. 35/2018, which provides a 0 percent down payment for car installments.
