Antara News, Saturday, July 24, 2010 03:52 WIB
Jakarta (ANTARA News) - Industry Minister MS Hidayat said green cars had great market potentials in Indonesia, particularly among middle-class consumers.
"There is now a trend to use green and low-priced vehicles," the minister said after accompanying Vice President Boediono in opening the Indonesian International Motor Show (IIMS) 2010 here on Friday.
He said such four-wheel vehicles were now in high demand in Indonesia. Low-cost , energy-efficient and environmentally friendly cars had great market potentials among middle-class people in Indonesia.
However, he said, he could not promise incentives for environmentally friendly cars to enable them to gain a large market. Cars with environmentally friendly technology are more expensive than cars with regular engines.
"If vehicle manufacturers in Indonesia already use environmentally friendly technology in most of their products, then we`ll talk about incentives," said the former chairman of the Indonesian Chamber of Commerce and Industry (KADIN).
But Hidayat also said t he supported the provision of incentives for environmentally-friendly cars. But the authority to give incentives, he said, was at the Ministry of Finance.
"I am not a finance minister," said Hidayat when reporters asked about the matter of incentives.
Previously, auto sole agencies (ATPMs) had called on the government to provide tax incentives for environmentally-friendly cars so that they could be sold at lower than their present prices. The price of environmentally friendly cars, such as the Toyota Prius with a hybrid engine, is now almost twice the price of cars of the same type using conventional technology (gasoline engine).
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