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Low Cost Green Car (LCGC) (Indonesian: Kendaraan Bermotor Roda Empat Hemat Energi dan Harga Terjangkau (KBH2), lit. 'Energy Efficient and Affordable Four-Wheeler Motor Vehicles') is an Indonesian automobile regulation which exempts low-cost and energy-efficient cars from luxury sales tax to ensure affordability, provided that 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 and to compete with Thailand-imported cars, thus creating more jobs locally. In some aspects, the regulation is similar to the Japanese kei car category and the Thai Eco Car program which also reduce taxes for small and efficient cars.

Specifications

The Ministry of Industry regulates LCGC to conform with the following initial specifications:

  • Petrol engine, displacement capacity of 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 engines;
  • Diesel engine, displacement 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 engines;
  • Turning radius below 4.6 m (4,600 mm);
  • Selling price below Rp 95,000,000 (2013) according to the location of the headquarters of the sole agent, with adjustment for automatic transmission being 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 the Luxury Tax of Vehicles concerning LCGC and Low Emission Carbon (LEC) regulations. The main points of the regulation are:

  • 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 a 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 the Karawang Assembly Plant to anticipate LCGC, although the government's LCGC rule had not yet been released. The plant would assemble 4,000 units of the Toyota Avanza and/or Daihatsu Xenia per month in the first run and would produce 10,000 units of cars per month, including the LCGC Toyota Agya and Daihatsu Ayla when the rule had been released.

Models and sales

Manufacturer Model Engine Displacement Sales
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Hatchback (5 seats)
Astra Daihatsu Motor Daihatsu Ayla 1.0 L, 1.2 L 19,141 40,775 35,084 39,087 28,051 26,952 22,108 13,091 21,384 23,500 23,758
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 52,792
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 1.2 L 22,376 67,074 57,646 45,009 29,004 29,106 25,082 12,952 16,992 21,336 20,602
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 61,752
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 45,801
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 Increase 204,705

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

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

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.

Production and export

In 2013, Indonesia produced 52,956 LCGC/LEC with no export, and predicted that the 2014 LCGC/LEC production would be150,000 units. Initial exports of the Daihatsu Ayla (as the Toyota Wigo) had been done in February 2014 to the Philippines. In 2013, Indonesia had exported non LCGC/LEC 170,907 Completely Built-Up (CBU) cars, and 105,380 Completely Knocked Down (CKD) cars.

See also

References

  1. "Menatap Kebijakan Mobil Murah". Kemenperin (Ministry of Industry) (in Indonesian). 2013-08-26. Retrieved 2022-02-13.
  2. "Jalan Panjang Insentif untuk Mobil LCGC". Kemenperin (Ministry of Industry) (in Indonesian). 2014-09-14. Retrieved 2022-02-13.
  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. "10 Mobil Terlaris Indonesia di 2014 - Panduan Pembeli - Mobil123.com". Mobil123.com - Indonesia No.1 Portal Otomotif (in Indonesian). Retrieved 2019-09-01.
  16. Media, Kompas Cyber. "Mobil Terlaris Sepanjang 2015". KOMPAS.com (in Indonesian). Retrieved 2019-09-01.
  17. Kuswaraharja, Dadan. "20 Mobil Terlaris di Indonesia Tahun 2016". detikoto. Retrieved 2019-09-01.
  18. 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.
  19. "Pasar LCGC mulai lesu". May 5, 2014.
  20. 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.
  21. 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.
  22. "500 LCGC to be Exported Monthly, Minister Says". January 30, 2014.
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