JAKARTA. PT Astra International, the biggest car distributor in the country, is pinning its hopes on lower fuel prices and economic recovery to help automotive sales in the second half of 2016. Car sales contracted 6% in the first two months of 2016 as a result of the economic slowdown.

Total automobile sales in January and February was 173.000 units, 10.000 units fewer than in the same period last year. The economic slowdown has reduced people's purchasing power, but sales are expected to recover in the second half.

"Economic growth was 4,7% last year. This year it may grow to more than 5%. We hope for higher demand in the second half," Astra International director Gunawan Geniusahadja said in Jakarta on Monday.

Reduced fuel prices, Gunawan added, was one of two aspects that determine car sales along with economic recovery. "If operational costs are lower, then transportation costs will be lower too, which can increase demand," He said.

Despite lower sales, Astra has kept its market share in the automotive industry. "We still have a 51% market share," he said. (Anton Hermansyah)

Editor: Dupla Kartini