Data compiled by PT Toyota Astra Motor, Toyota’s distributor in Indonesia, showed that sales totaled 23,022 units in May, down from 51,208 a year ago.
Toyota’s own sales fell 42.7% to 9,073 units.
The decline was attributed to high interest rates and weak consumer purchasing power.
At the root of the problem is the Indonesian government’s decision to increase fuel prices and reduce subsidies at a time of high international oil prices.
Fuel prices more than doubled in October last year and this has pushed inflation to its highest level in more than six years, noted Reuters. It has also driven up interest rates.
Indonesia’s automotive industry trade association has forecast that full year sales will reach 370,000-400,000 units this year, down from 533,910 in 2005.
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