Automakers get tax breaks for low-cost green cars.

Byline: Linda Yulisman, The Jakarta Post, Jakarta

Indonesia's car makers are soon expected to begin the production of more affordable cars, following the government's decision to provide long-awaited special tax breaks for so called eco-friendly vehicles.

Under the government regulation, signed by President Susilo Bambang Yudhoyono on May 23, the producers of green automobiles will receive a reduction of a luxury-goods sales tax as low as zero percent.

Industry Minister MS Hidayat said in Jakarta on Wednesday that with the announcement of the tax breaks, the country's car makers would soon be able to start the production of the low-cost cars because they had …