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LCGC Program Still Evaluated

30 October 2014 11:24 WIB

Group vokal JKT48 selaku brand ambassador Honda Brio beraksi saat peluncuran New Honda Brio di Jakarta, Rabu (11/9). Honda meluncurkan new Honda Brio dengan sejumlah varian meliputi new Brio A/T 1.2L dengan fitur lengkap namun harga terjangkau, Brio Sports 1.3L dan Brio Satya yang merupakan produk Low Cost Green Car (LCGC). ANTARA/Zarqoni maksum

TEMPO.CO, Jakarta – Industry Ministry secretary general Ansari Bukhari said the government was still mulling over the continuation of the low-cost green-car (LCGC) program. “We must see the profits and losses,” said Ansari on Wednesday, October 29, 2014. 

He said luxury good tax incentive for LCGC may be reduced or srubbed. Currently, the government imposes incentive of sales tax on luxury goods (PPNBM) up to zero percent. “That was the initial evaluation. It’s not detailed yet,” he said. 

The LCGC industry operates under Presidential Decree No. 41/2013, which gives PPNBM incentive up to zero percent for LCGC units. 

During his term as Jakarta governor, President Joko Widodo was one of the regional chiefs who opposed the LCGC program. Jokowi deemed the program as contradictory with the government's program to alleviate traffic congestion and air pollution.

KHAIRUL ANAM




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.


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.


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.