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.