Racheal Lee
Jan 28, 2014

Is green a selling point for Indonesia’s auto market?

INDONESIA - Curtailed fuel subsidies and new tax and finance reforms could be an opportunity to grow the country’s taste for low-cost green cars. But other population factors come into play, and marketers of other products could learn something from the auto market.

In the middle of last year, Indonesia’s government slashed a huge fuel subsidy, driving local petrol prices up 44 per cent and diesel 22 per cent, putting premium fuel at 6,500 rupiah US$0.53 per litre up from 4,500 rupiah and diesel at 5,500 rupiah US$0.46 per litre from 4,500 rupiah per litre.

Then in September a tax exemption to support production of more low-cost green cars LCGCs went into effect. While...

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