200,901 201,771 226,068 312,865 364,319
M
M 299,599 317,748 354,629 484,912 633,917
M
M
6.Others M 1. PT. TAMMIN (Toyota) 2. PT. KTB (Mitsubishi) 3. PT. ISI (Suzuki) 4. PT. HPM (Honda) 5. PT. ADM (Daihatsu) 6. Others
M
1. Java n.a
2. Sumatra 66,583 15.4
Note: ¹ Kompas, 12 Agustus 2006 Sources: GAIKINDO
M
Fig-1:Market Vs interest rate Fig-2: Market Vs Fuel Price
People's low buying power due to dramatic increase in fuel price, relatively small government expenditure for investment and credit interest which is still considered high (around 16%)are factors that has made automotive market lost its vigour. Fluctuation of interest rate will affect people's investment pattern and producers' ability in paying services. This can be seen from graph 1 which depicts relationship between market and interest rate.Automative market tends to gain power as interest rate declines, Graph 2 shows relation between market and fuel price. This graph shows that automotive market increased until mid 2005, but declined in the end of 2005.
Therefore it is expected that the government will create policies that will improve condition for business. Besides government, Bank Indonesia as holder of monetary authorship especially in the case of interest rate for consumption credit.
This was caused by government policy to increase fuel price dramatically. This rendered in inflation jump and thus weaken people's buying power.
