Indonesian car

Indonesian national car is the categorization of a Low Cost Green Car (LCGC) in Indonesia with the following initial specifications:

A group of national car makers who are members of Asosiasi Industri Automotif Nusantara (Asia Nusa) or Nusantara Automotive Industry Association firmly refuse incentives from the government due to their inability to produce the low priced cars.

The government provided Rp 144 billion ($16 million) fund for village cheap public transportation program in 2012.

Toyota, Daihatsu, Suzuki,Honda.. are set to produce a combined 500,000 LCGC 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.

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.

To achieve success with LCGC, two Chinese principals set up manufacturing/assembly plants in Indonesia, both companies (SAIC Motors Corp. and Liuzhou Wuling) formed a new company called SGMW.Wuling, and will cooperate with General Motors to build a 150,000 capacity manufacturing factory first and then use more local contents. It is predicted to operate fully by 2017. Indonesia will be the base of the Chinese principals to fulfill Southeast Asia market of ASEAN Market Community.

Indonesia's Industrial Minister and Indonesian Car Producers have agreed to make the Indonesian Micro Car with 650-700 cc capacity with same platform. They are undercarriage (car dimension and suspension) and power train (machine and transmission). With the same platform, the Break Even Point is expected to be 10,000 units/year instead of 28,000 units/year without same platform. Until now Indonesian Car Producers made their cars without this same platform. About 80 percent of Indonesian Micro Car components will be local components and initial production is predicted in 2013.

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:

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