The government set several terms and conditions for the manufacturing of LCGCs. For example, fuel consumption is required to be set at least 20 kilometers per liter while the car must consist – for 85 percent – of locally manufactured components . In exchange, the LCGCs are exempted from luxury goods tax, which allows manufacturers and retailers to set cheaper prices. On the long-term, the government wants to turn Indonesia into an independent car manufacturing country that delivers completely built units of which all components are locally-manufactured in Indonesia. Indonesia is the second-largest car manufacturing nation in Southeast Asia and the ASEAN region . However, due to robust growth in recent years, Indonesia is expected to somewhat limit the gap with Thailand’s dominant position over the next decade.
We’re a signer of the Climate Pledge and a contributor to the UN’s Race to Zero initiative. And in 2020 we acquired …
