Tuesday, June 11, 2013

Indonesian tax breaks to attract investment in manufacturing small cars ~ car loan




The Indonesian government is implementing LCGC Program (Low Cost Green Car - producing low cost cars and environmentally friendly) incentives for small cars in the country was producing fuel efficient and friendly environment.

Specifically, the incentives of the program will LCGC exemptions for small cars under 1.2L engine, and the fuel consumption is about 5L/100km. In addition, in order to enjoy the preferential tax rate, will LCGC regulations on the localization rate of the vehicle.


The purpose of the Indonesian government when planning the program since August last year to improve air pollution is increasing in major cities of the country, and to promote the automobile industry in the country.



With LCGC program, many hatchback models are popular in Indonesia have benefited as Toyota Etios Valco (Liva), Honda Brio, Mitsubishi Mirage, Nissan Micra, Toyota agya, Daihatsu Ayla. Currently the automobile manufacturers in Japan as Honda and Toyota have plans to invest in Indonesia to develop hybrid cars, while another company is Japan's Daihatsu committed investment program LCGC Indonesian government. Latest Mitsubishi have expressed interest in operating small car production, clean in Indonesia and said it plans to produce cars Mirage here to benefit from tax cuts.


LCGC program launched by the Government of Indonesia is not only environmental sense, but also to continue to promote investment in the country and abroad in the automobile industry, with the aim to overcome Indonesia soon became the center of Thailand a number of automobile manufacturers in South East Asia.


Meanwhile, many years before Indonesia, Vietnam each story suggests sampling strategy, but so far the car still struggling not know what to choose vehicles and have not done to concretize the idea of ​​setting .

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