Low Cost Green Car (LCGC) ( Indonesian : Kendaraan Bermotor Roda Empat Hemat Energi dan Harga Terjangkau (KBH2) , lit. 'Energy Efficient and Affordable Four-Wheeler Motor Vehicles') is an Indonesian automobile regulation which exempts low-cost and energy-efficient cars from luxury sales tax to ensure affordability, provided that they are assembled locally with a minimum amount of local components. The introduction of LCGC in Indonesia was meant to encourage the motorcycle owners/public transportation users to be able to afford their first cars, to reduce fuel subsidy and to compete with Thailand-imported cars, thus creating more jobs locally. In some aspects, the regulation is similar to the Japanese kei car category and the Thai Eco Car program which also reduce taxes for small and efficient cars.
6-603: The Ministry of Industry regulates LCGC to conform with the following initial specifications: In May 2013, the Indonesian government released the Government Regulation ( Peraturan Pemerintah ) Number 41 Year 2013 about the Luxury Tax of Vehicles concerning LCGC and Low Emission Carbon (LEC) regulations. The main points of the regulation are: Toyota , Daihatsu , Suzuki and Honda are set to produce
12-611: A combined 500,000 LCGCs a year with a predicted total investment of $ 1.8 billion in Indonesia by the end of 2012, after the government has agreed to exempt the LCGC from the luxury tax to boost domestic sales. On April 22, 2013, PT Astra Daihatsu Motor officially opened the Karawang Assembly Plant to anticipate LCGC, although the government's LCGC rule had not yet been released. The plant would assemble 4,000 units of
18-578: Is an Indonesian ministry. The ministry is under, and is responsible to, the President of Indonesia . The industrial portfolio was under Ministry of Welfare ( Indonesian : Kementerian Kemakmuran ) from 1945 to 1950. In 1950, industrial portfolio was under Ministry of Trade and Industry ( Indonesian : Kementerian Perdagangan dan Perindustrian ). After 1952, industrial portfolio was part of portfolios under Ministry of Economic Affairs ( Indonesian : Kementerian Perekonomian ). In 1959, industrial portfolio
24-609: The Toyota Avanza and/or Daihatsu Xenia per month in the first run and would produce 10,000 units of cars per month, including the LCGC Toyota Agya and Daihatsu Ayla when the rule had been released. In the first three months of 2014, 43,969 LCGC cars were sold. In the first six months of 2014, 85,643 LCGC cars were sold. In first seven months of 2014, the LCGC Toyota Agya sold 41,520 units to become
30-818: The third highest selling car in Indonesia after the Toyota Avanza and Honda Mobilio . In 2013, Indonesia produced 52,956 LCGC/LEC with no export, and predicted that the 2014 LCGC/LEC production would be150,000 units. Initial exports of the Daihatsu Ayla (as the Toyota Wigo) had been done in February 2014 to the Philippines . In 2013, Indonesia had exported non LCGC/LEC 170,907 Completely Built-Up (CBU) cars, and 105,380 Completely Knocked Down (CKD) cars. Ministry of Industry (Indonesia) Ministry of Industry ( Indonesian : Kementerian Perindustrian )
36-417: Was part of portfolios under Ministry of Industry ( Indonesian : Kementerian Perindustrian ). After 1952, industrial portfolio was divided into 2 departments, those are Department of Basic Industry and Mining ( Indonesian : Departemen Perindustrian Dasar dan Pertambangan ) and Department of People's Industry ( Indonesian : Departemen Perindustrian Rakyat ). The ministry's functions are: The ministry
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