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About: Low Cost Green Car (Indonesia)     Goto   Sponge   NotDistinct   Permalink

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Low Cost Green Car (LCGC) (Indonesian: Kendaraan Bermotor Roda Empat Hemat Energi dan Harga Terjangkau (KBH2), lit. 'Energy Efficient and Affordable Automobiles') is an Indonesian automobile regulation which exempts low-cost and energy-efficient cars from luxury sales tax to ensure the affordability, provided 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 Thai Eco Car program which also reduce taxes for small and efficient cars.