LCGC Vehicles Start Not Selling, Continues To Soar Prices To Be In The Spotlight

Exhibition IIMS 2025. (Photo: Karisa/VOI)

JAKARTA - The Low Cost Green Car (LCGC) vehicle program was first launched in 2013 as part of the government's efforts to provide affordable and environmentally friendly four-wheeled vehicles.

Since its launch, LCGC cars have become an attractive choice for people who want private vehicles at affordable prices.

Unfortunately, the latest data on the sale of Low Cost Green Car (LCGC) vehicles continues to decline every month, data from the Association of Indonesian Automotive Industries (GAIKINDO) for June 2025 shows a close reduction of 50 percent compared to the same period last year.

Automotive expert from the Bandung Institute of Technology (ITB) Yannes Martinus Pasaribu said LCGC sales in June 2025, which only managed to touch 7,762 units, indicated that LCGC purchases were less excited as prices continued to soar. In June 2024, LCGC sales figures touched 15,252 units.

The LCGC is targeted for the lower middle class who are very sensitive to economic change. Initially, he was very affordable, only worth around Rp. 80 million in 2014. However, now it is no longer low cost (cheap) because it is Rp. 138" Rp. 200 million, "said Yannes, as reported by ANTARA, Tuesday, July 15.

The decline in LCGC sales also occurred on a monthly basis, in May 2025 GAIKINDO recorded 8,546 units.

According to Yannes, the decline in LCGC sales is not only influenced by the higher selling price, but also the lack of fiscal policy which causes vehicle prices to no longer be cheap. Therefore, he considered that interference or assistance from the government was needed to boost LCGC sales.

Minister of Industry Agus Gumiwang Kartasasmita on Saturday (12/7) stated that the LCGC incentive program will continue until 2031 to maintain vehicle affordability for the community and support the gradual electrification transition.

Agus emphasized that collaboration between the government and the principal of automotive is very important, especially in the face of electrification transitions, global challenges, and maintaining a balance between local production and exports. In addition, the Indonesian automotive industry has absorbed large numbers of workers, so it needs to be maintained so that shocks do not occur

The existence of domestic component-level incentives and regulations (TKDN) is expected to provide long-term certainty for principals and industry players to continue producing and developing domestic energy-efficient vehicles.