Indonesian car sales are expected to rise 7% to 750,000 units in 2011, as growth slows sharply from 2010 as government plans to limit fuel subsidies bite.

Indonesia's car sales are estimated at 730,000 units this year, a 50% jump from the 486,000 units sold in 2009, Suparno Djasmin, chief executive of Daihatsu sales operations at PT Astra International, told Reuters.

Indonesia had initially planned to curb the supply of subsidised fuel in a bid to reduce the cost of fuel imports this September but the plan has been delayed to next year, sources said in July.

Indonesia's total domestic car sales rose 32% in September from a year ago, slower growth than seen earlier this year.

Domestic car sales for the full year are still expected to rise to a record level on strong consumer demand and wealth creation in an economy forecast to grow at more than 6% this year and next, the report added.