Finance:Low Cost Green Car (Indonesia)

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Short description: Automobile regulation
Daihatsu Sigra (2016–present)
Honda Brio Satya (2018–present)

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 reduce taxes for small and efficient cars.

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 (5 L/100 km; 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 (5 L/100 km; 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, the Indonesian government released the 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]

  • 0 percent luxury tax for cars with ICE with a maximum displacement of 1,200 cc for petrol and 1,500 cc for diesel and a minimal fuel consumption of 20 km/L (5 L/100 km; 56 mpg‑imp; 47 mpg‑US).
  • 50 percent luxury tax for green vehicles (hybrid, LPG, electric and others) with a minimal fuel consumption of 28 km/L (4 L/100 km; 79 mpg‑imp; 66 mpg‑US).
  • 75 percent luxury tax for green vehicles (hybrid, LPG, electric and others) with a fuel consumption between 20 and 28 km/L (5 and 4 L/100 km; 56 and 79 mpg‑imp; 47 and 66 mpg‑US).

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 was not yet released. The plant assembles 4,000 units Toyota Avanza and/or Daihatsu Xenia per month in the first run and would produce 10,000 unit of cars per month, including the LCGC Toyota Agya and Daihatsu Ayla when the rule had been released.[6]

Models and sales

Manufacturer Model Engine Displacement Sales
2013 2014 2015[7] 2016 2017[8] 2018[9] 2019 2020 2021 2022
Hatchback (5 seats)
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] 13,091 21,384 23,500
Nissan Motor Indonesia Datsun Go Panca
(2014–2020) 		1.2 L – 2,733 9,462 8,833 4,303 4,782 3,013 215 – –
Honda Prospect Motor Honda Brio Satya 1.2 L 4,958 26,683 31,820 36,470 43,378 46,900 54,659 29,979 29,976 46,804
Suzuki Indomobil Motor Suzuki Karimun Wagon R
(2013–2021) 		1.0 L 4,705 7,068 11,526 9,905 5,408 4,564 4,148 1,591 2,510 –
Toyota Astra Motor Toyota Agya 1.0 L, 1.2 L 22,376[10] 67,074[15] 57,646[16] 45,009[17] 29,004 29,106 25,082[18] 12,952 16,992 21,336
MPV (7 or 5+2 seats)
Astra Daihatsu Motor Daihatsu Sigra 1.0 L, 1.2 L – – – 31,939 44,993 50,907 52,283 23,295 40,283 51,427
Nissan Motor Indonesia Datsun Go+ Panca
(2014–2020) 		1.2 L – 17,787 19,896 16,650 6,181 3,263 1,612 85 – –
Toyota Astra Motor Toyota Calya 1.2 L – – – 47,280 73,236 63,970 54,549 23,442 35,375 43,582
Total Increase 51,180 Increase 162,120 Increase 165,434 Increase 235,173 Decrease 234,554 Decrease 230,444 Decrease 217,203 Decrease 117,741 Increase 146,520 Increase 186,649

In the first three months of 2014, 43,969 LCGC cars were sold.[19]

In the first six months of 2014, 85,643 LCGC cars were sold.[20]

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.[21]

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.[22]

See also

References

  1. ↑ "Menatap Kebijakan Mobil Murah" (in id). Kemenperin (Ministry of Industry). 2013-08-26. http://www.kemenperin.go.id/artikel/7185/Menatap-Kebijakan-Mobil-Murah. 
  2. ↑ "Jalan Panjang Insentif untuk Mobil LCGC" (in id). Kemenperin (Ministry of Industry). 2014-09-14. http://www.kemenperin.go.id/artikel/10097/Jalan-Panjang-Insentif-untuk-Mobil-LCGC. 
  3. ↑ "Peraturan Menteri Perindustrian Nomor 33/M-IND/PER/7/2013". 2013. http://regulasi.kemenperin.go.id/site/download_peraturan/1512. 
  4. ↑ "PERATURAN PEMERINTAH REPUBLIK INDONESIA NOMOR 41 TAHUN 2013". http://sipuu.setkab.go.id/PUUdoc/173799/PP0412013.pdf. Retrieved June 7, 2013. 
  5. ↑ "Cheap and Green Cars Coming to Indonesian Roads". March 4, 2012. http://www.thejakartaglobe.com/home/cheap-and-green-cars-coming-to-indonesian-roads/502397. 
  6. ↑ "Produksi Daihatsu belum optimal". April 22, 2013. http://industri.kontan.co.id/news/produksi-daihatsu-belum-optimal/2013/04/23. 
  7. ↑ Lili Sunardi (February 16, 2017). "Mobil Murah, untuk Siapa?". http://koran.bisnis.com/read/20170216/250/629277/mobil-murah-untuk-siapa. 
  8. ↑ Otomart.id (2018-01-26). "Ini Mobil LCGC Terlaris di Indonesia Sepanjang Tahun 2017" (in en). https://www.otomart.id/berita/mobil-lcgc-terlaris-2017.html. 
  9. ↑ Tim. "Penjualan LCGC 2018: Datsun dan Suzuki Suram" (in id-ID). https://www.cnnindonesia.com/teknologi/20190122095805-384-362703/penjualan-lcgc-2018-datsun-dan-suzuki-suram. 
  10. ↑ 10.0 10.1 VIVA, PT VIVA MEDIA BARU- (2014-01-23). "Daftar 20 Mobil Terlaris di Indonesia - VIVA" (in id). https://www.viva.co.id/otomotif/mobil/475459-daftar-20-mobil-terlaris-di-indonesia. 
  11. ↑ "10 Mobil Terlaris Indonesia di 2014 - Panduan Pembeli - Mobil123.com" (in Indonesian). https://www.mobil123.com/berita/10-mobil-terlaris-indonesia-di-2014/3696. 
  12. ↑ Media, Kompas Cyber. "Mobil Terlaris Sepanjang 2015" (in id). https://otomotif.kompas.com/read/2016/01/21/161528115/Mobil.Terlaris.Sepanjang.2015. 
  13. ↑ Kuswaraharja, Dadan. "20 Mobil Terlaris di Indonesia Tahun 2016" (in en). https://oto.detik.com/mobil/d-3410773/20-mobil-terlaris-di-indonesia-tahun-2016. 
  14. ↑ Rahadiansyah, Rangga (2020-01-23). "20 Mobil Terlaris 2019" (in Indonesian). Indonesia: Trans Media. https://oto.detik.com/mobil/d-4869965/20-mobil-terlaris-2019/2. 
  15. ↑ "10 Mobil Terlaris Indonesia di 2014 - Panduan Pembeli - Mobil123.com" (in Indonesian). https://www.mobil123.com/berita/10-mobil-terlaris-indonesia-di-2014/3696. 
  16. ↑ Media, Kompas Cyber. "Mobil Terlaris Sepanjang 2015" (in id). https://otomotif.kompas.com/read/2016/01/21/161528115/Mobil.Terlaris.Sepanjang.2015. 
  17. ↑ Kuswaraharja, Dadan. "20 Mobil Terlaris di Indonesia Tahun 2016" (in en). https://oto.detik.com/mobil/d-3410773/20-mobil-terlaris-di-indonesia-tahun-2016. 
  18. ↑ Rahadiansyah, Rangga (2020-01-23). "20 Mobil Terlaris 2019" (in Indonesian). Indonesia: Trans Media. https://oto.detik.com/mobil/d-4869965/20-mobil-terlaris-2019/2. 
  19. ↑ "Pasar LCGC mulai lesu". May 5, 2014. http://industri.kontan.co.id/news/pasar-lcgc-mulai-lesu/2014/05/05. 
  20. ↑ Edwardi (July 19, 2013). "Mobil Murah Datsun Go+ Panca Mulai Tempel Brio Satya". http://bangka.tribunnews.com/2014/07/19/mobil-murah-datsun-go-panca-mulai-tempel-brio-satya. 
  21. ↑ Kurniawan, Agung (August 20, 2014). "Ini Daftar Mobil Terlaris di Indonesia 2014" (in Indonesian). Kompas. http://otomotif.kompas.com/read/2014/08/20/092000115/Ini.Daftar.Mobil.Terlaris.di.Indonesia.2014. 
  22. ↑ "500 LCGC to be Exported Monthly, Minister Says". January 30, 2014. http://en.tempo.co/read/news/2014/01/30/056549713/500-LCGC-to-be-Exported-Monthly-Minister-Says. 



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