Automakers ready to begin production of low-cost green cars in Indonesia

Government hopes that the plans will induce global automakers to invest in localised production of low-cost, fuel-efficient cars.

The Indonesian government has finally approved the country's long-awaited Low-Cost Green Car (LCGC) policy, reports the Jakarta Post. The government hopes that the plans will induce global automakers to invest in localised production of low-cost, fuel-efficient cars. Under the LCGC regulation, a tax exemption may be obtained on gasoline (petrol)-powered vehicles with 1000cc engines and minimum fuel consumption of 22 kilometres per litre (km/l), or those with 1200cc engines that achieve 20 km/l. A tax exemption will also apply to diesel vehicles of up to 1500cc with a minimum fuel consumption of 20 km/l.