T

he World Bank says that low-cost green cars (LCGCs) are not the most important thing Indonesianeeds to improve its economic performance.'€œIndonesia needs more infrastructureinvestment to support the public,'€ World Bank managing director Sri Mulyani Indrawati said as quoted by Antara news agency in Badung, Bali, on Fridaywhen she was asked about her opinion regarding the controversial LCGC policy.Mulyani said that a lack of infrastructure had hindered Indonesia in achievingits optimal economic growth. She added that the critical infrastructurecondition in Indonesiahad also driven up inflation and widened the gap in both the current and trade accounts.The government recently offered incentives to companies manufacturing LCGCs,which has met strong opposition.Those who oppose the policy, such as Jakarta Governor Joko Widodo, said that producing LCGC would only increase the number of cars on the streetsand cause more traffic jams. Joko stressed that the government should think about how to improve public transportation and the supportinginfrastructure.The government defended the policy by saying that LCGCs would be specifically designed to consume non-subsidized fuel only and believed this would reduce fuel subsidy spending, which would in turn improve thecountry'€™s overall fiscal posture.