It is a further strategy of the government after issuing rules cheap and environmentally friendly cars (Low Cost and Green Car / LCGC) and Low Carbon Emission vehicle rules (LCE).
With this rule is expected to be environmentally friendly technologies into Indonesia and replace the role of extravagant cars in Indonesia.
“And the next step would be wasteful vehicles we love the area,” said Director General of Industry Leading Technology-Based Industry Ministry Budi senior official in his office.
This policy is also expected to make Budi automotive manufacturers who follow the program to add a Human Resources (HR) in Indonesia.
“The investment by itself encourage improved quality of skilled labor as in the field of automotive engineering, materials, production management and distribution services as well as logistics management,” he said.
In the Presidential Regulation Number 41 of 2013, for LCGC, the government remove luxury tax for most big-engined cars of 1,200 cc to 1,500 cc for petrol and diesel with minimal fuel consumption of 20 kilometers per liter.
As for the LCE, the government still impose a tax with the following conditions:
1. 75% of Sale Price for vehicles that use advanced technology diesel / petrol engine, dual petrol engine gas (CNG converter kits / LGV), biofuel engines, hybrid engines, CNG / LGV dedicated engine, with fuel consumption ranging from 20 kilometers per liter to 28 kilometers per liter or other fuel that is equivalent to the
2. 50% of Sale Price for vehicles that use advanced technology diesel / petrol engines, biofuel engines, hybrid engines, CNG / LGV dedicated engine, with fuel consumption of more than 28 kilometers per liter or other fuel that is equivalent to it.