Kamis 13 Nov 2014 19:03 WIB

New govt to continue Low Cost Green Car project

Rep: Dessy Suciati Saputri/Satya Festiani/ Red: Yeyen Rostiyani
Two varians of Low Cost Green Car (File)
Two varians of Low Cost Green Car (File)

REPUBLIKA.CO.ID, JAKARTA -- Indonesia's newly installed government will continue Low Cost Green Car (LCGC) project. Vice President Jusuf Kalla believes that the project helps the country facing ASEAN Economic Community.

"We expect our rising middle class can afford to buy car," Kalla commenting on the project, Thursday, November 13. The project also prevents Indonesian to purchase car from the neighboring countries. 

"We have to grab our own market," he said.

Previous government has made regulation on LCGC. The regulation says the cut to luxury tax amounts to 25 percent for cars that can run 20 kilometers on a single liter of fuel, 50 percent for 28 kilometers per liter, and 100 percent for machines managing more than that. 

"We have to continue the project because it has been ruled," he said.

Earlier, President Joko 'Jokowi' Widodo was opposing the project while he was acting as Governor of Jakarta. But Kalla is optimistic that Jokowi will support the program. 

"He was acting as governor. Thus, he thought about the traffic jam in Jakarta. Now he has a broader horizon," he explained.

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