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Government Suggested to Revoke LCGC Policy

3 April 2014 09:34 WIB

Seorang model berdiri disamping mobil Daihatsu DR Estate dalam pameran Indonesia International Motor Show (IIMS), di Jiexpo Kemayoran, Jakarta (19/9). Dalam pameran ini hampir semua Agen Tunggal Pemegang Merek menawarkan mobil murah ramah lingkungan atau Low Cost Green Car (LCGC). TEMPO/Imam Sukamto

TEMPO.CO, Jakarta - Author of "Mobil Murah dan Kemacetan Jakarta", A.M Fatwa, has suggested the government to revoke tax incentive for low cost green car (LCGC) as it is deemed to be missing the target and will only worsen the capital city’s traffic jam.

A. M Fatwa had previously initiated the use of the right of reply for the Regional Representative Council (DPD) to the President regarding LCGC policy.

"DPD only has the right to ask the president, that's why we hope this issue can be passed on the House of Representatives (DPR)," said Fatwa yesterday.

LCGC is an example of policy that was not discussed comprehensively and will eventually cause problems. President Susilo Bambang Yudhoyono (SBY) proposed the cheap car policy after returning from India. The idea was that these cheap cars are for those who live in villages. But now, these cars are only small cars that look like city cars. "This LCGC policy should be revoked," he said.

The government must think of other strategic policies as a replacement. "Indonesia is an archipelago, so the development of sea and air transportation must be prioritized," said Fatwa.

ANGGRITA DESYANI




Govt to Apply Luxury Goods Tax for Low-Cost Green Car

12 Maret 2019

Govt to Apply Luxury Goods Tax for Low-Cost Green Car

The government is currently drafting a new scheme of luxury goods tax for four-wheeled vehicles, including the low-cost green car.


LCGC Program Still Evaluated

30 Oktober 2014

LCGC Program Still Evaluated

Luxury good tax incentive for LCGC may be reduced or
scrubbed.


Ministers to Discuss LCGC Program

28 Oktober 2014

Ministers to Discuss LCGC Program

The LCGC policy, which was implemented last year, had raised
concerns because it was considered to contradict efforts to
reduce traffic jams.


Indonesia Sees Surge in Demand of LCGC

21 Mei 2014

Indonesia Sees Surge in Demand of LCGC

The demand for low cost green cars (LCGC) in Indonesia is
rapidly increasing and has encouraged car manufacturers to be
more innovative.


LCGC Remains Attractive despite Ban on Subsidized Fuel

28 April 2014

LCGC Remains Attractive despite Ban on Subsidized Fuel

The low-cost green cars are still appealing to consumers
although they are barred from using subsidized fuel.


No Sanction Yet on LCGC Using Subsidized Fuel

2 April 2014

No Sanction Yet on LCGC Using Subsidized Fuel

The LCGC program is initially aimed at trimming the country's
fuel consumption by 60 percent.


Industry Ministry to Think Over Chatib's Request  

25 Maret 2014

Industry Ministry to Think Over Chatib's Request  

Minister Chatib had requested the government to stop LCGC

program because it caused an increase in fuel subsidy.


LCGC Sales Triggers Fuel Subsidy Hike

25 Maret 2014

LCGC Sales Triggers Fuel Subsidy Hike

The Association of Indonesian Automotive Industry (Gaikindo)

confirmed that the policy did not restrain consumers from

buying expensive vehicles.


LCGC can Dominate ASEAN Market, Expert Says

7 Februari 2014

LCGC can Dominate ASEAN Market, Expert Says

The tax-free policy applied in ASEAN will enable car

manufacturers to gain more profit by exporting LCGC.


LCGC Sales Continues Despite Negative Responses

19 November 2013

LCGC Sales Continues Despite Negative Responses

Daihatsu Ayla, for example, was reported to have been sold by as
much as 9,306 units up to October 2013.