Jakarta Globe, May 28, 2013
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KompasOtomotif
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President
Susilo Bambang Yudhoyono recently signed a government regulation aimed at
supporting the development of environmentally-friendly vehicles in Indonesia.
Newsportal
Kompas.com reported on Tuesday that Yudhoyono signed the Low Emission Car
Project decree, which seeks to curb taxes and boost demand for greener cars.
“The
president signed it yesterday [Monday],” Johnny Darmawan, the president
director of Toyota Astra Motor, told Kompas.com on Monday.
An
anonymous source at the Ministry of Industry also confirmed to Kompas that the
decree had been signed.
The
regulation stipulates special tax incentives for eco-friendly vehicles such as
hybrids and electric cars. Furthermore, it notes that such cars must be
assembled in Indonesia and fulfill the minimum standard for local parts to
receive the tax break.
“It was
proposed that luxury taxes would not apply to low-cost green cars ,” Budi
Darmadi, the director general of advanced industry based on high technology at
the Ministry of Industry, said.
Previously,
Astra International said the company would delay production of its eco-friendly
vehicle model, the Ayla.
Astra Daihatsu
director Pongky Prabowo said the company is waiting for government regulations
on low-cost green cars before it starts producing the Daihatsu Ayla and the
Toyota Agya, the latter a collaboration with Toyota Motors.
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