The Association of Indonesian Automotive Industries (Gaikindo) lowered its forecast for car sales in Indonesia in full-year 2017, to 1.06 million units from initial target of 1.1 million. The revision was particularly attributed to weak sales within the (lower) middle class segment. Jongkie Sugiarto, Chairman of Gaikindo, said the Indonesian economy has not shown significant acceleration in 2017 and therefore consumers’ purchasing power has not improved markedly. So far this year (January-October 2017), a total of 898,218 cars were sold in Indonesia, the largest car market in Southeast Asia. This is only a modest 2.5% (y/y) increase from the nation’s car sales figure in the same period one year earlier.