My husband and I waited impatiently for the 21st Indonesia International Motor Show (IIMS) 2013 to kick off at the Jakarta International Expo in Kemayoran, Central Jakarta, last Thursday
y husband and I waited impatiently for the 21st Indonesia International Motor Show (IIMS) 2013 to kick off at the Jakarta International Expo in Kemayoran, Central Jakarta, last Thursday. With the theme 'Smart Vehicle Mobility', we were anxious to see the eco-friendly cars take center stage. For a while now we have wanted to replace our car with an affordable low-cost green car (LCGC).
After all, who doesn't want a 'cheap' car that is also eco-friendly? Less carbon, less toxic air!
The biggest concern, however, is do major big cities that have been crusading against severe gridlock need the LCGC policy, as of right now? Do these so-called LCGCs serve their function well amid the clogged roads of the cities?
I am afraid that if the policy was carried out anytime soon, it would result in a counter-productive result: worsening traffic congestion, less fuel and energy inefficiency.
As announced, the government would provide fiscal incentives, including tax breaks for LCGC producers that would provide affordable cars for low- and middle-class people. The favorable tax breaks have quickly encouraged Toyota and Daihatsu to join Honda in launching their own eco-friendly models with price tags of between Rp 76 million and Rp 120 million (US$6,660-$10,500).
As a result, more and more people will switch from public transportation to private cars. Auto sales surged 25 percent to a record in 2012, with some 1.1 million vehicles sold last year despite more stringent down payment requirements. Roughly 65 percent of new cars were purchased on credit, and for motorbikes, it may be even higher. This growth is worrisome.
To avoid a potential consumer credit bubble, the central bank has applied loan-to-value and down payment regulations. Nevertheless, this year's automotive sales still look set to keep growing. The Indonesia Automotive Industry Association has forecast 2013 sales of 1.1 million vehicles. With automakers now developing more LCGCs for the domestic market, sales might even double. More consumers will swap their two wheels for four wheels.
It was predicted in 2009 that the Indonesian capital could experience total gridlock by 2014, but that might come sooner than expected.
With the prospect of hundreds of thousands of LCGCs hitting the already polluted and overcrowded roads around Jakarta and other big cities, many environmentalists are dreading the ghastly consequences. Popular Jakarta Governor Joko 'Jokowi' Widodo has also voiced his concern over the promotion of LCGCs.
The current number of cars and motorcycles on the roads already paralyze Jakarta's streets. LCGCs may be more fuel-efficient, but they will still emit carbon and nitrogen oxide (NO). If their numbers were to increase massively, then the term 'green cars' would mean nothing because cumulative pollution would be higher than it is now. The sorcery surrounding LCGCs stands to worsen public health and the environment, the opposite of its intended purpose.
On top of that, more cars mean increased fuel consumption. Rather than promoting LCGCs, the government should first support affordable, reliable, and comfortable public transportation.
Yuni Herlina
Depok, West Java
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Thank you for sharing your thoughts. We appreciate your feedback.