Industry / Indonesia
New Finance Rules Threaten Autos Growth Potential
January 2012 | Industry NewsThe rapid growth in Indonesia's new vehicle sales may be positive for the major industry players, encouraging investment in local production from vehicle producers and parts suppliers alike, but for the Bank of Indonesia (BI), it has sounded alarm bells regarding a potential bubble scenario. Total vehicle sales in 2011 were 17% higher year-on-year (y-o-y), despite some disruption from the floods in Thailand, which followed 58% growth in 2010, and this performance has been largely attributed to easily accessible
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