Indonesia is heading towards a green car future, as the production of the Low Cost Green Car (LCGC) is expected to boost Indonesia's automotive exports, Indonesian news agency ANTARA reported.
LCGC production is expected to increase exports of national production up to 20, as car exports are currently between 12 to 13 per cent.
"LCGC is also prepared to meet domestic demand and avoid the influx of imported cars, because Asean countries such as Malaysia and Thailand have produced similar vehicles," said Budi Darmadi, a spokesperson from the Ministry of Industry.
According to Budi, the recently issued government regulation regarding LCGC will increase the number of component industry as well as help push national car production.
"Employment generated from this industry is also not small; with the inclusion of approximately 10 cars and 100 component industries, investment will add a workforce of about 30,000 people," he said.
Budi also said that the demand for motor vehicles, especially cars, in Indonesia has been boosted by the growing Indonesian economy and Indonesia will be flooded with imported products if demand is not supplied.
However, Budi also admitted that the LCGC might increase traffic congestion in 50 cities around Indonesia, but this is only a small percentage of the approximately 500 cities.
He also said that more people need cars at the moment, and fuel efficient vehicles are especially sought after, especially since the recent rise in petrol prices in Indonesia.