Effects of Cheap Car Launch

Effects of Cheap Car Launch

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The government has approved the launch of a low-cost car called the Low Cost Green Car (LCGC) which essentially (he said) cheap energy-efficient cars. Is not it??? I personally am not sure about this theme. How to save energy, if you usually use a motorcycle consuming enough 3 liters per week now use a car that can dozens of liters per week.

A minister said that LCGC car users who do not use Pertamax aka Non Subsidized Fuel will cause the car to be damaged and will last for about two years (source). Is it right??? Is there any guarantee that LCGC car users will use Pertamax instead of subsidized premium fuel? Obviously this is very dangerous to state finances that potentially collapsed due to the insufficient allocation of fuel subsidies as planned because so many poor people in Indonesia are using subsidized fuel for their private vehicles. The Ministry of Finance began to worry that if the fuel subsidy broke down means the Ministry of Industry responsible (source)

What is certain with this cheap car policy is:

Car loans will be booming as many middle-class people are interested in buying LCGC cars. The car is still a symbol of prestige in our society. Who owns the car is considered more successful than those who do not own a car. Society of the middle class, especially from the civil servants will flock to guarantee original employment documents to get credit from the Bank to buy the cheap car. The middle class people can also take other paths by applying for car ownership loans through leasing companies.

Consumption of subsidized fuel will increase. Cheap car manufacturers will not want to lose customers by setting up a special car for Pertamax use. Moreover, will be a lot of creativity from workshops that try to anticipate cheap cars can still use subsidized fuel alias Premium.

There will be more cars parked on the sidewalk near the community settlements. Quite a lot of car owners do not have garages in their homes respectively, even owned cars are often forced to park on the road a bit away because the house is in a narrow alley that can not be bypassed by the car.

The low-cost car policy that has been implemented by the government is a contradiction to the policy of saving fuel subsidies. I do not know whether there is any connection or not, getting closer to 2014 seems to be starting to emerge controversial policies. Do these controversial policies have anything to do with the potential benefits to be received by certain parties? God alone is all-knowing.

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