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LCGC Sales Triggers Fuel Subsidy Hike

25 March 2014 06:16 WIB

Mobil murah milik Astra Daihatsu Motor (ADM), Astra Daihatsu Ayla dengan tipe GT saat diperkenalkan di Indonesia International Motor Show (IIMS) 2013, Jakarta, (24/9). TEMPO/Subekti

TEMPO.CO, Jakarta - The government is planning to evaluate the low cost green car (LCGC) program for its fuel efficiency. The products are supposed to reduce fuel subsidy and encourage the use of biofuel. However, car owners tend to choose subsidized fuel.


Agus Martowardojo, Bank Indonesia (BI) Governor, said last week that the increase in fuel price was a strong structural reformation to push down fuel subsidy, compared to high export and import duties applied on luxury vehicles.


The Association of Indonesian Automotive Industry (Gaikindo) confirmed that the policy did not restrain consumers from buying expensive vehicles.


(*)



low cost green car (LCGC)


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