Low Cost Green Car (Indonesia)

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[1] and to compete with Thailand-imported cars, thus creating more jobs locally.[2] In some aspects, the regulation is similar to the Japanese kei car category and Thai Eco Car program which also promises tax cuts for small and efficient cars.

For the British gospel choir, see London Community Gospel Choir.
Daihatsu Sigra (2016–present)
Honda Brio Satya (2018–present)
Suzuki Karimun Wagon R (2013–present)

Specifications

Ministry of Industry regulates LCGC to conform with the following initial specifications:[3]

  • Petrol engine, range of capacity 980-1,200 cc (0.98-1.2 L) with fuel consumption not lower than 20 km/l (56 mpg‑imp; 47 mpg‑US),
  • Research Octane Number (RON) 92 fuel for petrol engine,
  • Diesel engine, range of capacity up to 1,500 cc (1.5 L) with fuel consumption not lower than 20 km/l (56 mpg‑imp; 47 mpg‑US),
  • Cetane number (CN) 51 fuel for diesel engine,
  • Turning radius below 4.6 m (4,600 mm),
  • Selling price below than Rp 95,000,000 (2013) according to the location of the headquarter of the sole agent, with adjustment for automatic transmission is 15%, for safety features 10%, and could be adjusted to inflation,
  • Addition of an Indonesian brand name and logo,
  • Manufacturing facility investment plan.

Regulation

In May 2013, government has released new Government Regulation (Peraturan Pemerintah) Number 41 Year 2013 about Luxury Tax of Vehicles concerning LCGC and Low Emission Carbon (LEC) regulations. The main points of the regulation are:[4]

  • Luxury Tax 0 percent of petrol car with maximum displacement 1,200cc (1,500cc for diesel car) and can drive minimal 20 kilometers/liter.
  • Luxury Tax 50 percent of advance technology car (hybrid, gas, electric and others) with driving ability minimal 28 kilometers/liter.
  • Luxury Tax 75 percent of advance technology car (hybrid, gas, electric and others) with driving ability between 20 and 28 kilometers/liter.

Investment

Toyota, Daihatsu, Suzuki and Honda are set to produce a combined 500,000 LCGCs a year with 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.[5]

On April 22, 2013, PT Astra Daihatsu Motor officially opened Karawang Assembly Plant to anticipate LCGC, although government's LCGC rule is not yet released. The plant assembles 4,000 units Toyota Avanza and/or Daihatsu Xenia per month in the first run and will produce 10,000 unit of cars per month, including the LCGC Toyota Agya and Daihatsu Ayla when the rule has been released.[6]

Models and sales
Manufacturer Model Capacity Sales
2013 2014 2015[7] 2016 2017[8] 2018[9] 2019
Astra Daihatsu Motor Daihatsu Ayla 1.0 L, 1.2 L 19,141[10] 40,775[11] 35,084[12] 39,087[13] 28,051 26,952 22,108[14]
Toyota Astra Motor Toyota Agya 1.0 L, 1.2 L 22,376[15] 67,074[16] 57,646[17] 45,009[18] 29,004 29,106 25,082[19]
Honda Prospect Motor Honda Brio Satya 1.2 L 4,958 26,683 31,820 36,470 43,378 46,900 54,659
Nissan Motor Indonesia Datsun Go Panca 1.2 L - 2,733 9,462 8,833 4,303 4,782 3,013
Nissan Motor Indonesia Datsun Go+ Panca 1.2 L - 17,787 19,896 16,650 6,181 3,263 1,612
Suzuki Indomobil Motor Suzuki Karimun Wagon R 1.0 L 4,705 7,068 11,526 9,905 5,408 4,564 4,148
Toyota Astra Motor Toyota Calya 1.2 L - - - 47,280 73,236 63,970 54,549
Astra Daihatsu Motor Daihatsu Sigra 1.0 L, 1.2 L - - - 31,939 44,993 50,907 52,283
Total 51,180 162,120 165,434 235,173 234,554 230,444 217,203

In the first three months of 2014, 43,969 LCGC cars were sold.[20]

In the first six months of 2014, 85,643 LCGC cars were sold.[21]

In first seven months of 2014, the LCGC Toyota Agya sold 41,520 units to become the third highest selling car in Indonesia after the Toyota Avanza and Honda Mobilio.[22]

Production and export

In 2013, Indonesia produced 52,956 LCGC/LEC with no export, and predicted 2014 LCGC/LEC production is 150,000 units. Initial export of Daihatsu Ayla (as Toyota Wigo) has been done in February 2014 to Philippines. In 2013, Indonesia has exported non LCGC/LEC 170,907 Completely Built-Up (CBU) cars, and 105,380 Completely Knocked Down (CKD) cars.[23]

See also

References
  1. "Menatap Kebijakan Mobil Murah". Kemenperin (Ministry of Industry).
  2. "Jalan Panjang Insentif untuk Mobil LCGC". Kemenperin (Ministry of Industry).
  3. "Peraturan Menteri Perindustrian Nomor 33/M-IND/PER/7/2013". 2013.
  4. "PERATURAN PEMERINTAH REPUBLIK INDONESIA NOMOR 41 TAHUN 2013" (PDF). Retrieved June 7, 2013.
  5. "Cheap and Green Cars Coming to Indonesian Roads". March 4, 2012. Archived from the original on March 6, 2012. Retrieved June 1, 2019.
  6. "Produksi Daihatsu belum optimal". April 22, 2013.
  7. Lili Sunardi (February 16, 2017). "Mobil Murah, untuk Siapa?".
  8. Otomart.id (2018-01-26). "Ini Mobil LCGC Terlaris di Indonesia Sepanjang Tahun 2017". Berita Otomotif Terbaru - OTOmart. Retrieved 2020-02-11.
  9. Tim. "Penjualan LCGC 2018: Datsun dan Suzuki Suram". teknologi (in Indonesian). Retrieved 2020-02-11.
  10. VIVA, PT VIVA MEDIA BARU- (2014-01-23). "Daftar 20 Mobil Terlaris di Indonesia - VIVA". www.viva.co.id (in Indonesian). Retrieved 2019-09-01.
  11. "10 Mobil Terlaris Indonesia di 2014 - Panduan Pembeli - Mobil123.com". Mobil123.com - Indonesia No.1 Portal Otomotif (in Indonesian). Retrieved 2019-09-01.
  12. Media, Kompas Cyber. "Mobil Terlaris Sepanjang 2015". KOMPAS.com (in Indonesian). Retrieved 2019-09-01.
  13. Kuswaraharja, Dadan. "20 Mobil Terlaris di Indonesia Tahun 2016". detikoto. Retrieved 2019-09-01.
  14. Rahadiansyah, Rangga (2020-01-23). "20 Mobil Terlaris 2019" [20 of Indonesia's Best Selling Cars in 2019]. Detik.com (in Indonesian). Indonesia: Trans Media. Retrieved 2020-01-24.
  15. VIVA, PT VIVA MEDIA BARU- (2014-01-23). "Daftar 20 Mobil Terlaris di Indonesia - VIVA". www.viva.co.id (in Indonesian). Retrieved 2019-09-01.
  16. "10 Mobil Terlaris Indonesia di 2014 - Panduan Pembeli - Mobil123.com". Mobil123.com - Indonesia No.1 Portal Otomotif (in Indonesian). Retrieved 2019-09-01.
  17. Media, Kompas Cyber. "Mobil Terlaris Sepanjang 2015". KOMPAS.com (in Indonesian). Retrieved 2019-09-01.
  18. Kuswaraharja, Dadan. "20 Mobil Terlaris di Indonesia Tahun 2016". detikoto. Retrieved 2019-09-01.
  19. Rahadiansyah, Rangga (2020-01-23). "20 Mobil Terlaris 2019" [20 of Indonesia's Best Selling Cars in 2019]. Detik.com (in Indonesian). Indonesia: Trans Media. Retrieved 2020-01-24.
  20. "Pasar LCGC mulai lesu". May 5, 2014.
  21. Edwardi (July 19, 2013). "Mobil Murah Datsun Go+ Panca Mulai Tempel Brio Satya". Archived from the original on July 21, 2014. Retrieved June 1, 2019.
  22. Kurniawan, Agung (August 20, 2014). "Ini Daftar Mobil Terlaris di Indonesia 2014" [List of Best Selling Cars in Indonesia 2014]. Kompas (in Indonesian). Retrieved August 22, 2017.
  23. "500 LCGC to be Exported Monthly, Minister Says". January 30, 2014.
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