REPUBLIKA.CO.ID, JAKARTA - Minister of Industry MS Hidayat estimated that production of low cost green cars in Indonesia would reach 75 thousands units by the end of the year. This target would be met if the Ministry of Justice and Human Rights signed regulation on the production of low cost green car.

"I have signed the letter last week and it has been submited to the Ministry of Justice and Human Rights," Hidayat said on Tuesday.

Government regulation No. 41/ 2013 about Taxable Goods Classified as Luxurious in the Form of Motor Vehicles Subject to Luxury Goods Sales Tax, establishes to support the production of four-wheeled vehicle's industry. Article 2 mentions that the taxable base is calculated zero percent of the sales prices for vehicles with capacity 1,200 cc and the fuel consumption at least reaches 20 liters per kilometer. The government regulation is the basis of the incentive for low cost green car.

The regulation also arranges the maximum selling price is 95 million IDR per unit. However, this price not yet included additional transfer tax, motor vehicle tax, and other taxes. Besides Toyota and Daihatsu, Hidayat said that Honda would also manufacture the low cost green car in Indonesia. 

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