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Low Cost Green Car
Automobile regulation / From Wikipedia, the free encyclopedia
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Low Cost Green Car (LCGC) (Indonesian: Kendaraan Bermotor Roda Empat Hemat Energi dan Harga Terjangkau (KBH2), lit. 'Energy Efficient and Affordable Automobiles') is an Indonesian automobile regulation which exempts low-cost and energy-efficient cars from luxury sales tax to ensure affordability, provided that they are assembled locally with a minimum amount of local components. The introduction of LCGC in Indonesia was meant to encourage the motorcycle owners/public transportation users to be able to afford their first cars, to reduce fuel subsidy[1] and to compete with Thailand-imported cars, thus creating more jobs locally.[2] In some aspects, the regulation is similar to the Japanese kei car category and the Thai Eco Car program which also reduce taxes for small and efficient cars.