The Indonesian government will soon issue the low carbon emission policy for electric and hybrid cars, as well as the low-cost and green car (LCGC), according to Industry Minister MS Hidayat.
“The low carbon emission policy will be issued in a presidential decree on August 30, 2012. With this rule, the principal companies are expected to immediately invest in Indonesia,” he said here on Tuesday.
Hidayat added that the government would offer incentives to the manufacturers of LCGC and other environmentally friendly vehicles such as hybrid and electric cars.
“The incentives are meant to attract investments from companies such as Honda and Toyota in hybrid products. Daihatsu has already committed to invest in the LCGC programme,” he explained.
Hidayat said the environmentally friendly car programme launched by the government continues to spur investment in the automotive sector.
“The additional investment due to the low carbon emission programme is of about US$4.5 billion. The most important thing is there will be the development of a local industry sub-sector, which will supply components to Daihatsu and Toyota for LCGC products and hybrid products, respectively” he pointed out.
Hidayat expressed optimism that the international investors would help develop the domestic automotive industry.
“With their experience in the automotive sector, along with their commitment to invest here, we can go a long way,” he said.
