Indonesian market attracts attention of car makers - OBG

Indonesian market attracts attention of car makers

An expanding middle class and a broadening economic base have been cited as two of the driving forces behind the forecast for rapid expansion of the Indonesian automotive industry, with predictions that domestic and regional demand will combine to boost growth over the next few years. However, rising interest rates and a weaker rupiah may put a damper on sales in the more immediate term.
Automotive ownership in Indonesia is low in comparison to some of its neighbours, with penetration rates of around 80 vehicles per 1000 people, as against 330 per 1000 in Malaysia. With a population of 240m and per capita income on the rise, the potential market for automotive producers and importers is set to expand, ... Read more.

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