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Strategic Analysis of LCGC Policy in Indonesia and its Impact

  • September 2014
  • 57 pages
  • Frost & Sullivan
Report ID: 2385664

Summary

Table of Contents

LCGC Policy to be a Game Changer in Indonesian Automotive Market

This research analyzes the government regulations and policy for low-cost green cars in Indonesia, which form a part of the low carbon emissions (LCE) program. It discusses in detail the LCGC policies in Indonesia through executive summary, LCE program with overview, background, objectives, along with policy details. The future potential and challenges are also discussed, supplemented with conclusion and takeaways. The base year of the study is 2013.

Executive Summary—Key Findings
The low carbon emission (LCE) program with its focus on low-cost green cars (LCGCs) has proved to be successful, driving growth of the overall market by an average of % per month. While the program covers many green technologies, it has excluded EVs. Compared to similar programs in Thailand and Malaysia, the LCE program is aimed primarily at boosting local demand and increasing motorization. Low pricing and luxury tax incentives benefit the domestic market rather than exports. In terms of technology, conventional petrol/diesel, natural gas vehicle (NGV), and advanced petrol/diesel are expected to have a higher off take because of more aligned demand, supply and supporting factors. On the other hand, biofuel and hybrid vehicles are expected to face challenges in terms of infrastructure availability, supply chain, fuel standard, and market affordability.

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