Growing demand from foreign and domestic markets is expected to boost sales at tyremaker Gajah Tunggal 15% this year.

Corporate communications officer Marcello Taufik declined to reveal specific numbers to Reuters but said 2007 revenue had risen by about 20% from 5.47 trillion rupiah ($US596.8m) in 2006.

"We are targeting a 15% increase from our sales figure of 2007. Demand from the domestic motorcycle market is firm as well as the foreign market," Taufik told Reuters.

The news agency said tyre sales in Indonesia have been rising after the automotive sector began to recover after a fall in interest rates.

Analysts reportedly expect the company, 10% owned by Michelin, to post revenue of 6.3 trillion rupiah in 2007, and 7.07 trillion this year. 2007 net profit is estimated at 167.6bn rupiah.

Taufik also told Reuters that the company plans to increase daily car tyre production capacity to 35,000 units from 30,000 units last year.