The Association of Indonesian Automotive Industry reported car sales (from factories to dealers) as of October 2020 only rose 1 percent in October, from 48.55 units to 49,043 units - Photo by Energy and Mineral Resources Ministry Office

JAKARTA (TheInsiderStories) – The Association of Indonesian Automotive Industry (GAIKINDO) reported car sales (from factories to dealers) as of October 2020, only rose 1 percent from 48.55 units to 49,043 units. Compared to October 2019, the auto sales fell 49 percent from 96,128 units at that time.

From January to October, the manufacturer sold 421,089 units, or down 51 percent from 10 months in 2019 period, which reached 851,222 units. Last month, the Astra Group recorded biggest sales in a month, reaching 26,410 units with the most dominance sales Toyota 16,419 units and Daihatsu 8,289 units.

While, other producer sold 22,633 units. The largest selling hold by Honda of 7,732 units, Mitsubishi 7,118 units, and Suzuki 5,143 units. Nissan sales collapsed to only 37 units, from last September 1,421 units and other brands 2,603 units.

“Over the past five months, Astra and national car sales have consistently increased,” said the spokesman of PT Astra International Tbk (IDX: ASII), Boy Kelana Soebroto, in a press statement.

in Nov. 11, 2020, the central bank reported, Indonesia’ retail sales index still contraction in September after occurred since June 2020. The Consumer Confidence Index also lowered from 83.4 in September to 83.4 in October.

The Bank also reported, growth in the Real Sales Index for recorded contraction 8.7 percent in September compared to last year (YoY), but improving compared to August minus 9.2 percent. The improvement occurred in most of the commodity groups such as food, beverage and tobacco, which recorded positive growth in the last two months, as well as improvements in the clothing and motor vehicle fuel groups.

The retail sales is predicted to be slightly restrained in October, with contraction 10.0 percent (YoY). A number of commodities, such as food, beverage and tobacco also the cultural and recreational goods are predicted to experience a decline in sales. While, sales performance for several commodities, like household appliances and motor vehicle fuels.

On a monthly basis, retail sales are projected to grow 0.1 percent in October, in line with the celebration of national religious holidays and long holidays at the end of the month. In terms of prices, inflationary pressure is predicted to increase in the next three months and in the next six months until March 2021 it will decrease.

This indication of an increase reflected in the General Price Expectation Index for the next three months of 142.5, higher than the previous month’ of 132.5. This was driven by an increase in demand during the holidays. In the next six months, said Bank Indonesia is 160.0, lower than the 166.9 in the previous month, in line with the smooth distribution of goods and supplies.

While, according to its components, consumer confidence in future economic conditions remains is at an optimistic level with the Consumer Expectation Index of 106.6. It said, the consumers’ expectations for future economic conditions remain strong, supported by expectations for future income and job availability.

Then, consumer confidence in current economic conditions weakened as consumer confidence in income and job availability declined. This is suspected to be the impact of the lack of recovery in economic activity and community income due to the COVID-19 pandemic.

Written by Editorial Staff, Email: theinsiderstories@gmail.com