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LCGC Remains Attractive despite Ban on Subsidized Fuel

28 April 2014 16:24 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 - It has been predicted that consumers would still be interested in purchasing the low-cost green cars (LCGC) despite bans against the car using subsidized oil fuel.

“The policy may have impacts on sales, but we hope it won’t be significant,” Jongki Sugiharto, the chairman of the Association of Indonesian Automotive manufacturers (Gaikindo), told Tempo on Monday, April 28, 2014.

Jongki explained there would be an increase in LCGC consumers’ operational costs if they used non-subsidized fuel as it was more expensive than the subsidized one.

According to Jongki, the prices of LCGCs were about the same as used cars that were still allowed to consume subsidized fuel.

“Consumers may think that they should buy used cars because they can fill it with subsidized fuel,” he added.

Jongki, however, said that such consideration was not necessarily true because a new LCGC had come equipped with the latest technology to save fuel.

“An old car with an engine capacity of 1,300 cc is not necessarily as fuel-efficient as a new model with an engine capacity of 3,000 cc,” he explained.

Jongki said it was important for carmakers to educate their consumers about the technology that promoted fuel efficiency installed in LCGC new models. Gaikindo has set a target to sell around 125,000 units of LCGC a year. The association claimed they had sold 80,000 units from October 2013 to March this year.

AMIR TEJO



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.


Government Suggested to Revoke LCGC Policy

3 April 2014

Government Suggested to Revoke LCGC Policy

The policy is deemed to be missing the target and will only
worsen the traffic jam in Jakarta.


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.