New vehicle sales in Indonesia rose by 3.2% to 76,362 units in January, from 73,990 units a year earlier, according to automotive industry association Gaikindo.
The association has forecast sales to rise by 5% in 2012, after rising by almost 17% to a record 893,164 units in 2010, though it concedes government policy could threaten further growth in the short term.
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Bank Indonesia is considering whether to require local lenders to raise the minimum down payment on car loans to 30% from an effective average of around 20% at present. Also, the government is once again looking to reduce fuel subsidies, which will likely result in higher fuel prices.
