Low Cost Green Car
The Low Cost Green Car (LCGC; Indonesian: Kendaraan Bermotor Roda Empat Hemat Energi dan Harga Terjangkau (KBH2), lit. 'Energy Efficient and Affordable Four-Wheeler Motor Vehicles') is an Indonesian automobile regulation which exempts low-cost and energy-efficient cars from luxury sales tax to ensure affordability, provided that they are assembled locally with a minimum amount of local components. The introduction of Low Cost Green Cars (LCGC) in Indonesia aimed to make car ownership more accessible for motorcycle owners and public transportation users. This initiative was designed to reduce fuel subsidies and enhance competition with imported cars from Thailand, ultimately fostering local job creation. In some aspects, the regulation is similar to the Japanese kei car category and the Thai Eco Car program which also reduce taxes for small and efficient cars.