The government will launch a program to produce low-cost cars in the next two years, the Industry Ministry said, Asia Pulse reported.
The national cars will come in two levels - one with prices from Rp60 million ($6,000) to Rp70 million and another at Rp40 million to Rp50 million, said Director General of Transport Equipment Budi Darmadi.
Under the program, the ministry hopes that the country's production capacity would increase by 200,000 units a year.
The Indonesian Chamber of Commerce and Industry (Kadin) should include the low-cost car program in its industrial roadmap to be in line with the government program, Darmadi said.
Darmadi said his office is preparing a draft proposal for incentives acceptable to the government to boost production of low-cost cars expected to start in 2012.
He said he hopes to receive inputs especially from automotive industrialists on the incentives before the proposal is submitted to the government.