Unpopular Jokowi’s Letter on Cheap Car to Vice President

Jokowi, the popular Jakarta Governor sent a letter to Vice President calling for the postponement for the sales of the low-cost green car (LCGC) in Jakarta. E.E. Mangindaan, the Minister of Transportation, wanted that the LCGC program should be carried out in line with the road infrastructure availability in the country. “The number of cheap cars should not be excessive because the infrastructure is not yet sufficient”, said he.

One may consider such a letter and statement as controversial. Most of the reasons that the opponents of the LCGC program have put forward are related to traffic problems. They show their worry that the traffic in the big cities will be stagnant as the infrastructures that are available would not be able to afford the additional LCGC.

But Jakarta does not reflect the image of Indonesia. In many small cities in the country, one may count with his fingers the vehicles that run on the road. After twilight, the roads in those cities are almost deserted. Obviously, the LCGCs are suitable for such cities. The LCGC is classified as the one which consumes one liter for 28 kilometer-distance, has 60 percent local content and the selling price below Rp 75 million  (US $6,800). Just a couple days after launching, almost 18,000 cheap cars have been sold out where most the buyers are those who live in Jakarta and nearby cities.

Low and middle-class people are eager to buy such cars as they cannot afford to buy a normal car which price beyond their purchasing power and buy motorcycles instead. Now having such a low price car available, some of them may convert from riding motorcycles to cheap cars. The haves may also buy the car as a second [or higher] vehicle especially for their kids.

The number of cars in Indonesia compared to its population is among the lowest in the world around one car for 40 people, compared that of the developed countries which ratio is 1:3. The availability of the LCGC will certainly increase the car population in Indonesia. Huge investment up to US$ 3.5 billion is required and it might absorb thousands of workers to fabricate the cars.

Definitely the LCGC mass productions will give a positive impact on the country economy as they improve the quality of the private transportation mode in term of fuel saving, transportation efficiency as compared to bigger and expensive cars, the condition of transportation mode especially for those using motorcycles and, last but not least, the environment.

However, a big controversy has arisen as the government launches the beginning of the mass production of LCGC. Isn’t that the people car (“mobil rakyat”) that the country is longing for? The car which is not exclusively for the haves but also for middle and lower class? Of course, to become a national people car, it is hoped that at the latest stage the local content would be close to 100 percent.

How come that we should against the relatively poor people for having a little comfort by possessing LCGC replacing their motorcycles in favor of the relatively rich people enjoying their “luxury” cars? Shouldn't we have the opposite standpoint by encouraging people to have LCGC as it gives so many benefits for the low income people?

Mr. Governor, we understood of your apprehension on the Jakarta traffic jams as they are already aggravated. But don’t you consider to impose the luxury car (more than 3000 ccs) usage limitation, by for example allowing them to circulate only beyond the office time instead of limiting the LCGC? Or more radically proposing to limit the production of the 3000 cc-cars or higher rather than that of LCGC?

The postponement of the cheap car mass productions will be a blunder as it will cause Indonesia to suffer a big loss, as by 2015 any ASEAN countries under AFTA can easily export their cheap cars into their neighboring countries. They have kept eyes to take any opportunities to inundate their cheap cars here and certainly will establish their sole agents in our country for selling their home-made cheap car.