Cheap car program might burden Minister of Energy and Mineral Resources despite the program was a breakthrough policy of Ministry of Industry.
"Cheap car program will increase number of cars in Indonesia. We must provide more and more fuels. But, every policy has its consequences,".Deputy Minister of Energy and Mineral Resources, Susilo Siswoutomo said on Thursday.
The increase of economic growth is usually followed by growth in car sales. Siswoutomo said, better economy could also reduce the fuel subsidy to decrease dependency to state"s subsidy.
Government has issued regulations about Production of Low Cost Green Car (LGCC). Ministry of Industry through Regulation No. 33/2013 on July 1, 2013 allowed some companies producing LGCC to get tax holiday. Those companies are Toyota, Daihatsu, Honda, Suzuki, Mitsubishi, Nissan and also new player, Tata Motor.
State owned oil and gas company, PT Pertamina warned that the plicy could trigger the increasing number of cars and it also meant the increasing fuel use.
"Hence, amount of fuel consumption must be adjusted to quota. The program will increase number of cheap cars, then government must be quick approve if Pertamina asks additional fuel quota. It is important to anticipate fuel shortage," Deputy Director of Marketing and Distribution of Pertamina, Suhartoko on Thursday.
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