Car production in Indonesia during the current fasting month of Ramadan is declining because producers are reducing overtime hours, an Indonesian Motor Vehicle Industry Association (Gaikindo) executive said.

"Production this month and next September will be declining because overtime hours are being reduced," said an analyst. He said that overtime hours could not be maximized in the current fasting month because there were times for breaking of the fast and holidays.

He further said that demand for cars in Indonesia continued to increase, predicting that car sales in the country this year would set a new record, namely exceeding 700,000 units. The highest sales so far was achieved in 2008 when car sales reached 600,000 units.

The same opinion was also voiced by Marketing Director of Toyota Astra Motor (TAM) Joko Trisanyoto. He said that in August Toyota sales could be going down because of declining stocks. "In the current fasting month, production declines because overtime works could not be maximized," he said.

He predicted that TAM's sales would decline by 18.5 percent from about 27,000 units in July to about 22,000 units this month.