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For instance, gas consumption is required to be set a minimum of 20 kilometers per liter whereas the automobile should consist – for 85 % – of regionally manufactured components . In exchange, the LCGCs are exempted from luxurious goods tax, which allows manufacturers and retailers to set cheaper prices. Due to the easier financial policy and the top of the economic slowdown in 2016 (GDP progress accelerated to five.02 % y/y), Indonesian automobile sales finally rebounded in 2016. This correlation between home automotive gross sales and financial progress is clearly visible within the case of Indonesia.

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