Indonesian Auto Makers Fear Fallout From New Loan Rules
The government says it is raising the minimum down payment for vehicle purchases from 5% to 30% to prevent potential loan defaults should the Indonesian economy falter.
The Indonesian Automotive Manufacturers Assn. (Gaikindo) cuts it 2012 sales forecast 7% as the government prepares to introduce tighter lending rules for vehicle buyers.
Starting June 15, the minimum down payment for vehicle purchases jumps from 5% to 30%.
The Jakarta Post newspaper reports the Bank of Indonesia and the Capital Market and Financial Institution Supervisory Agency say the policy is needed to prevent potential loan defaults should the Indonesian economy falter.
Gaikindo, while seeking a delay in the new lending rules, scales back its sales forecast to 875,000 units from the 940,000 predicted at the beginning of the year. Indonesian vehicle deliveries reached a record 894,000 in 2011.
The Bangkok Post reports Gaikindo and the National Economic Committee have asked for enforcement of the new loan regulations to be delayed or phased in. The industry recommends a gradual increase in down payments, introduced in two or three steps, starting with 10% this year and 15% to 20% next year.
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