VIVAnews - The decrease in the BI Rate will bring forth a positive psychological impact to boost consumption.
People's purchasing power will increase if the BI rate cut is followed by the decrease in consumption loan interest rate.
Head of the Indonesia Automotive Industry Association (Gaikindo) Gunadi Sindhuwinata said in Jakarta on Tuesday, May 5, that the BI Rate cut will provide positive tendency to people who are for the time being restraining their consumption.
He explained that the domestic automotive market is going to expand during the crisis. Automotive export market will decrease by 20 to 30 percent whereas the production will shrink by 15 percent.
The export of two-wheeled vehicles will only contribute by around one percent of six billion produced units (around 60,000 units).
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Translated by: Ariyantri E. Tarman
