The Indonesian government will be announcing details of the low cost green car (LCGC) regulation by the end of this month. According to Bisnis Indonesia, Minister of Industry M.S. Hidayat told the Indonesian press “LCGC to be completed this month.”
The LCGC policy is aimed at boosting Indonesia's automotive manufacturing sector by granting special duty exemption on import of machinery, goods and materials to facilitate production of compact, environmentally friendly cars.
The policy was supposed to be announced late last year, but been delayed until now.
Pending official confirmation from the Indonesian government, CBT understands that LCGC vehicles can be summarized as vehicles with an engine capacity of 1.2 litre (petrol), delivering fuel economy of at least 20 km per litre, with a local content of at least 85 percent and priced below IDR 100 million (approximately RM 32,000).