To start just LCGC already have a local component of up to 40 percent, and in the next 5 years will have a local component LCGC up to 80 percent.
And it is this which makes the selling price of the vehicle LCGC in Indonesia can get cheaper.
A car is a collection of components, can reach approximately 18 thousand components in a car. If it will have to import so subtract the price of the car can be expensive. And if you make (production) here right price could be cheaper.
LCGC will also build components sector in Indonesia. An estimated 8,000 local components will be installed in the vehicle LCGC.
If if takes about 10,000 components needed to make a car. In program development and LCE LCGC car, then about 8,000 components will be made at least 4,000 domestic and components intended for LCE program.
After officially signed by President SBY, Indonesia’s automotive manufacturers are only waiting for a decree of the Minister of Industry to be able to do the production, and the decision of the Minister of Finance as a reference to the tax incentives within 1 month.