Indonesian car sales declined by 20% in 2009, according to an industry group.

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The Indonesian Automotive Industries Association (Gaikindo) said national car sales dropped to 486,061 units from 607,805 in 2008.


However, the figure for 2009 was still higher than many had predicted earlier in the year.


After a very weak first half, the Indonesian vehicle market recovered later in the year as the economy picked up.


Low inflation, helped in part by a strengthening rupiah, allowed the Bank of Indonesia to keep interest rates low and restore business and consumer confidence.


Gaikindo predicts that the market will grow in 2010 as a more comprehensive economy recovery gets into full swing.


The association expects domestic car sales to grow by 15-20% during 2010, reaching almost 600,000 units this year.

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