UPDATE 1-Indonesia's motorbike sales rise y/y in Aug, but

gloom remains | Reuters

* Motorbike sales +2.1 y/y in Aug, vs -21.1 pct in July
* Car sales -6.4 pct y/y in Aug, vs -39.1 pct in July
* Target for 2015 car sales cut for a second time
* Higher motorbike sales could be a mirage - association
(Adds comments from associations, details)
By Gayatri Suroyo and Nilufar Rizki
JAKARTA, Sept 11 (Reuters) - Sales of motorbikes and
automobiles in Indonesia recovered slightly in August after
months of poor numbers, but the industry remains pessimistic
about the outlook for the rest of this year.
Motorcycle sales rose 2.1 percent from a year earlier in
August, data from industry association showed on Friday, the
first growth after seven months. Sales in August were 622,089
units, the highest since October last year.
The number of cars sold in August still contracted on an
annual basis, but only by 6.4 percent, compared with July's 39.1
percent plunge. From a year earlier, car sales have fallen every
month since September 2014.
Sales of cars and motorbikes are leading economic indicators
in Southeast Asia's largest economy, where domestic consumption
accounts for more than half of gross domestic product (GDP).
The August increase in motorbike sales did not dispel gloom.
"We don't see this as a breath of fresh
http://www.baersbaerygooddogbytes.com/the-best-ways-to-make-your-motorbike-more-efficient/ air,"

said Sigit
Kumala, head of commercial at Indonesia's motorcycle
association, adding the August figure could be a mirage.
"The fact that sales were down more than 21 percent in
January-September means this is still a tough year," he said.
Indonesia's car association, Gaikindo, was equally downbeat.
Jongkie Sugiarto, chairman, said it just cut its 2015 car sales
target for the second time, to between 950,000 and 1 million
from 1.1 million.
At the beginning of 2015, Gaikindo had forecast sales of 1.2
million cars for the year.
"We are not seeing much change," Sugiarto said.
In a bid to revive growth in automotive industry, the
central bank in June eased its regulations on minimum
downpayments for car and motorcycle loans.
The new minimum downpayment for cars and motorcycles bought
with credit was set at 25 percent and 20 percent respectively,
from 30 and 25 percent previously.
The measure "offers little support and doesn't have much
impact," Sugiarto said.
Hurt by low commodity prices, Indonesia's annual economic
growth dropped to 4.67 percent in the second quarter, its
weakest pace in six years.

Bank Indonesia expects 2015 growth of 4.89 percent, which

would make this the first expansion below 5 percent since 2009.
(Additional reporting by Fransiska Nangoy; Editing by Richard
Borsuk)