New vehicle sales in Indonesia increased by 11.4% to 89,456 units in December, from 80,325 units a year earlier, according to data released by local industry association Gaikindo.

Full year sales rose by almost 25% to a new record of 1,116,230 units, from 894,164 units in 2011, with increased borrowing and strong domestic economic growth driving sales ever higher.

Interest rates are at record lows at present, with the Bank Indonesia overnight lending rate at 5.75% and with commercial banks offering further discounted rates.