5% Growth in Car Sales Expected in Indonesia This Year

Domestic passenger car sales in Indonesia will grow 5% to about 1.1 million units in 2016, buoyed by the government's target for 5.3% growth in gross domestic product this year, predicts the Assn. of Indonesia Automotive Industry (Gaikindo).

The increase would reverse last year’s 16% drop to 1 million units. The trade group also predicts exports, which fell 6% to 191,000 units in 2015, will jump 15% to 220,000 units and nearly triple to 600,000 by the end of 2018.

Gaikindo says low interest rates, easier access to credit and low inflation should bolster domestic demand for new cars this year.