Who says that the recent fuel price increase will hit the automotive industry? Ask those in the business and they will tell you they are still optimistic. They still have plenty of scope to expand their business because car sales in Indonesia are still lower than in neighboring countries.

Their arguments are based on the proportion of car ownership in the total Indonesian population. They may forget there are many Indonesians in remote areas who do not rely on motorized vehicles for their daily life. But if they are right to be optimistic then this really is bad news for big cities like Jakarta.

Read more: http://old.thejakartapost.com/yesterdaydetail.asp?fileid=20080619.E03

Source: The Jakarta Post (www.thejakartapost.com)