Jakarta (ANTARA Babel) - The Indonesian government will certainly put in place a regulation on the production of low-cost green cars (LCGC) because a company has invested heavily on green cars, said a senior government official.
"The Ministry of Finance will ensure that the LCGC regulation is put in place," said Anshari Bukhari, secretary general of the ministry of industry, on Tuesday.
The Ministry of Industry is keen on implementing the regulation by the end of this year.
The secretary general said the minister of finance has prepared the regulation on LCGC because the government is concerned about the tax incentives for the production of low-cost cars.
"It also reflects investors' trust in the government," Anshari said. He believes that the regulation will be implemented.
Anshari said the Toyota Group has increased its production capacity to produce cars in accordance with LCGC cars' production requirements.
The requirements include a machine capacity which should be below 1,200 cubic cylinders (cc), with a fuel consumption of 20-22 km per litre (minimum).
Astra had launched two models - Agya and Astra Daihatsu Ayla (last September). They are low-cost and eco-friendly cars.
He said the LCGC policy will boost Indonesia's national car production. Until the third quarter of this year, the automotive industry had grown by 7.52 percent.
"The automotive, steel and food industries have contributed to the national industrial growth significantly," he said.(*)
