FATE OF GREEN CAR PROGRAM DEPENDS ON NEXT GOVERNMENT

By Andi Abdussalam

Jakarta, Sept 24 (Antara) - About a year ago, the government's low-cost green car (LCGC) production program became a hot discourse following the rejection of Jakarta Governor Joko Widodo (Jokowi) who said it would worsen Jakarta's already serious traffic gridlock.          He wrote to Vice President Boediono expressing his objection to the production of LCGC cars in Jakarta. Yet the government decided to go ahead with its inexpensive car production hoping it would help boost automotive exports and reduce the use of subsidized fuels.          Now, Jokowi has won the presidential race and will be installed as the president of the country. Will the next government under Jokowi scrap the LCGC program? How will automotive manufacturers who have produced LCGC cars respond to it if the program is scrapped?     "Businesses are flexible. They flow like water. If here the tap is tightened, they will flow to other channels," Gaikindo Secretary General Noegardjito said here on Wednesday.          He said that he would not make too many comments with regard to politics, including the possibility of the LCGC program to be stopped by the next government under the Joko Widodo - Jusuf Kalla administration.          "We will follow the (next) government if it scraps the program. We have been manufacturing LCGC cars also because we are following the (current) government's program," he said.

RI'S LOW-COST CARS TO TARGET EXPORT MARKET

By Andi Abdussalam
Jakarta, Sept 21 (Antara) - The question of who will purchase Indonesia's new inexpensive automobiles became a focus of discussions following Jakarta Governor Joko Widodo's objection that cheaper cars will only worsen the capital city's traffic problems.          Indonesia is en enormous market for auto sales as it has 33 provinces with a population of about 240 million people.          So if Jakarta is already considered to be a city 'packed' with vehicles and terrible traffic jams, then new cars --which will be built based upon the government's low-cost and green car (LCGC) program-- could be sold to customers in regions other than Jakarta.          Yet, there is no guarantee that Jakartans will not purchase green cars, which are expected to be sold at Rp95 million per unit.       Jakarta Governor Joko Widodo, popularly known as 'Jokowi', recently sent a letter to Vice President Boediono regarding the government's LCGC policy, which he fears would worsen traffic problems in the city.