JAKARTA - Minister of Industry Agus Gumiwang Kartasasmita announced an adjustment in the price of motorized vehicles with Energy Savings and Affordable Prices (KBH2) or Low Cost Green Car (LCGC) which will increase by 5 percent.
"The government will soon make adjustments to the LCGC price. I announce the LCGC price adjustment of 5 percent," said the Minister of Industry quoting Antara, Tuesday, February 21.
According to Minister of Industry Regulation Number 33 of 2013 concerning LCGC Production Development, the reference price set is IDR 95 million.
The price is then revised and stated in the Minister of Industry Regulation Number 36 of 2021 concerning Vehicles with Four-wheeled Motor Vehicles for Low Carbon Emissions, to Rp135 million.
With the planned increase of 5 percent, the LCGC benchmark price rose by around Rp. 6.7 million to Rp. 141.7 million.
Agus said the price adjustment was made due to several factors, including an increase in raw material prices and logistics costs.
"We see that the prices of raw materials and logistics must be adjusted. There is an adjustment in the price of LCGC, it is hoped that many automotive industrial products will innovate," he said.
The Minister of Industry added that the price increase would not burden people who want to buy cars from the LCGC segment.
"The price adjustment must be calculated properly, it must be taken into account the purchasing power as well as inflation, the increase in percentage is not allowed from the inflation rate. It must still be maintained low costs and green cars," said the Minister of Industry.
TMMIN Operations Director Bob Azam said the adjustment should have been made, given the current increase in raw materials.
If you look at the increases that have occurred naturally. Because in recent years, some components have increased very remarkably. It is also a blessing for us, because commodities have risen, such as rubber rising, nickel rising, iron rising," said Bob.
According to Bob, the increase will provide opportunities for LCGC production to be increased to meet consumer needs.
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