Indonesia pushes low-cost ‘green car’ production

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Toyota_Agya_IndonesiaIndonesia has started to offer incentives to support the production of more low-cost ‘green cars’ after Toyota declared its commitment to supply the country with environmentally-friendly vehicles earlier in September, Antara News Agency reported.

Indonesia’s government is offering these incentives in a bid to make the country a production hub for green cars within ASEAN, the report said.

“The Ministry of Finance will ensure that the low cost green cars regulation is put in place,” Anshari Bukhari, secretary general of the Ministry of Industry said, adding that the ministry hopes to implement the policy by the end of 2013.

To qualify under Indonesia’s low cost green cars category, a car must have an engine capacity less than 1,200cc and minimum fuel consumption of 20-22 kilometers per liter.

On September 9, Indonesian automaker Astra launched two such models – the Toyota Agya and Astra Daihatsu Ayla. The Agya and Ayla are the first vehicles to receive certification under the Indonesian government’s Low Cost Green Car programme which supports the “widespread adoption of affordable and fuel-efficient cars,” with certified vehicles eligible for reduced taxes.

The Toyota Agya and Daihatsu Ayla will be produced at a new plant in Karawang, 70 kilometers east of Jakarta, completed at the end of 2012. A total of 30,000 units are expected to be delivered by the end of 2013.

With the development of a production hub for low cost green cars, Indonesia hopes to become the leading ASEAN car producer by surpassing Thailand. Total car sales in ASEAN in 2012 surpassed the three million mark. The two largest contributors to these sales were Thailand, with 1.3 million cars sold, and Indonesia with 1.1 million. Total car sales in ASEAN are expected to pass four million vehicles in 2013 and five million in 2014, says Indonesia Investments.

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Reading Time: 2 minutes

Indonesia has started to offer incentives to support the production of more low-cost ‘green cars’ after Toyota declared its commitment to supply the country with environmentally-friendly vehicles earlier in September, Antara News Agency reported.

Reading Time: 2 minutes

Toyota_Agya_IndonesiaIndonesia has started to offer incentives to support the production of more low-cost ‘green cars’ after Toyota declared its commitment to supply the country with environmentally-friendly vehicles earlier in September, Antara News Agency reported.

Indonesia’s government is offering these incentives in a bid to make the country a production hub for green cars within ASEAN, the report said.

“The Ministry of Finance will ensure that the low cost green cars regulation is put in place,” Anshari Bukhari, secretary general of the Ministry of Industry said, adding that the ministry hopes to implement the policy by the end of 2013.

To qualify under Indonesia’s low cost green cars category, a car must have an engine capacity less than 1,200cc and minimum fuel consumption of 20-22 kilometers per liter.

On September 9, Indonesian automaker Astra launched two such models – the Toyota Agya and Astra Daihatsu Ayla. The Agya and Ayla are the first vehicles to receive certification under the Indonesian government’s Low Cost Green Car programme which supports the “widespread adoption of affordable and fuel-efficient cars,” with certified vehicles eligible for reduced taxes.

The Toyota Agya and Daihatsu Ayla will be produced at a new plant in Karawang, 70 kilometers east of Jakarta, completed at the end of 2012. A total of 30,000 units are expected to be delivered by the end of 2013.

With the development of a production hub for low cost green cars, Indonesia hopes to become the leading ASEAN car producer by surpassing Thailand. Total car sales in ASEAN in 2012 surpassed the three million mark. The two largest contributors to these sales were Thailand, with 1.3 million cars sold, and Indonesia with 1.1 million. Total car sales in ASEAN are expected to pass four million vehicles in 2013 and five million in 2014, says Indonesia Investments.

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