Fuel Prices Increased, Car Sales Expected to Slump

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  • Dua karyawan memeriksa ban di salah satu stan pameran mobil di Indonesia International Motor Show (IIMS), Kemayoran, Jakarta, 17 September 2014. ANTARA/OJT/Martha Herlinawati Simanjuntak

    Dua karyawan memeriksa ban di salah satu stan pameran mobil di Indonesia International Motor Show (IIMS), Kemayoran, Jakarta, 17 September 2014. ANTARA/OJT/Martha Herlinawati Simanjuntak

    TEMPO.CO, Jakarta - The increase in subsidized fuel prices is predicted to hit many industrial sectors, one of them is the automotive industry.  Car sales are expected to slump.

    Minister of Industry Saleh Husin claim to have discussed the issue with Gaikindo.  “But the numbers have yet to be discussed,” Saleh said in Semarang.  Previously, Gaikindo established a target sale of 1.25 to 1.3 million car units until the end of the year (2014).

    Secretary General to the Ministry of Industry Anshari Bukhari said that the increased fuel prices will reduce large engine capacity car sales.  According to Anshari, people will prefer to buy cars with engine capacity under 1500cc or low-cost green car (LCGC). “LCGC might get an increase in sales,” he said.

    President Joko Widodo announced on Monday, November 17,  to increase subsidized fuel prices of Rp2,000 per liter.  Premium gas is up from Rp6,500 to Rp8,500 while diesel gets bumped from Rp5,500 to Rp7,500 per liter.

    HUSSEIN ABRI YUSUF