"The Ministry of Finance and Ministry of Industry will work together to prepare the regulations for hybrid cars and LCGC," said Finance Minister Agus Martowardojo here on Wednesday.
Agus affirmed that the government continues its preparations for the implementation of President Susilo Bambang Yudhoyono`s directions regarding energy-efficient vehicles.
"What we have discussed with the Ministry of Industry are not just LCGC and hybrid products; the government will develop a vehicle that runs on non-energy fuel oil (BBM). There are four or five types of these vehicles."
"These products must be manufactured in Indonesia, but because they require specialised technology, they cannot be produced in Indonesia at present. To attract investment, the government will provide fiscal incentives," he added.
Agus also mentioned that the government will provide incentives to principals who are committed to supporting such programmes and the manufacture of LCGC hybrid cars.
Earlier, President Susilo Bambang Yudhoyono had declared that the government will provide fiscal incentives for hybrid and electric vehicles as part of its efforts to reduce fossil fuel consumption in the future.