Jakarta. Astra Property, the subsidiary of Astra International, welcomed Bank Indonesia’s decision to cut its key interest rates by 25 basis points (bs) to 6 percent.

The company’s director Nilawati Irjani told reporters that this would give a positive signal to Indonesian economic growth, particularly the property sector. 

“Usually, when the interest rate drops, adjusting the lending rate needs time. But this is a positive signal to the economy and we welcome this,” Nila said on Thursday.

A lower interest rate is set to drive the property’s sector which will eventually improve the people’s purchasing power, according to Nila. Astra Property also welcomed the government initiatives to support the property sector, including the government-borne value-added tax incentive which recently got extended to the end of the year.

The central bank has also lowered the deposit facility by 25 bps to 5.25 percent. They also announced a 25 bps cut to the lending facility which now stands at 6.75 percent. Bank Indonesia’s Perry Warjiyo has also encouraged banks to lower their credit interest rate to spur economic recovery.

Likewise, Isuzu Astra Motor Indonesia’s director Yohanes Pratama said that the rate cut could be a boon to the automotive industry. About 70 percent of commercial car sales take place through credit or leasing so this could spur some recovery in sales. 

“As of August, commercial vehicle sales have dropped 20 percent l, and Isuzu faced a 7-8 percent contraction. We hope that Isuzu’s sales will improve in the fourth quarter of 2024,” Yohanes said. 

Isuzu is also ready to boost its exports as the economic climate improves. Isuzu has exported its products to 19 countries, including the Philippines, Laos, Myanmar, and the Latin Americas. 

Astra Daihatsu Motor (ADM) recorded an incredible performance in the national automotive market with first-time buyers becoming the top contributors to the company’s business growth. 

“Daihatsu makes up 36 percent of the cars under Rp 300 million category, and over 70 percent of our customers are first-time buyers,” Rokky Irvayandi, the head of the domestic marketing division at ADM, said. 

OLXmobbi, an online marketplace platform for secondhand cars, saw a 40 percent year-on-year growth in the first half of 2024 compared to 2023.

“Hopefully, we will continue to grow and increase our market share,” Agung Iskandar, the director of Astra Digital Mobil, told the press. 

Agung attributed OLXmobbi’s growth to the service integration with Auto2000 and Astra Daihatsu. This allows consumers who wish to switch from a used car to a new one easily to access services instantly.