CAR SALES EXPECTED TO FALL 30 PCT IN 2009

Jakarta, Dec 6 (ANTARA) - Domestic car sales in 2009 are expected to fall by up to 30 percent from this year's figure (over 580,000 units) because of the global economic downturn, an industry spokesman said.

"It think (car sales in 2009) will reach 350,000-450,000 units," Chairman of the Indonesian Motor Vehicle Producers Association (Gaikindo) Bambang Trisulo said here on Saturday.

The recent 25 percent cut in the benchmark interest rate locally known as BI Rate would have an impact on car sales though it would be felt a few months later, he said.

But the persistent drop in global crude prices would affect the most the domestic car sales, he said.

The Gaikindo chief said he was optimistic the 2009 general elections would contribute to the domestic car sales. "I believe the polls will raise the car sales," he said.

A decline in the price of premium gasoline would have an impact
on the inflation rate albeit small, he said.

If the inflation rate could be kept in check, the people's purchasing power would improve and later raise the domestic car sales, he said.

Despite the global economic downturn car exports were projected to reach 60 percent of this year's, he said.