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Case Study : LCGC ( Low Cost Green Car ) Effect to Indonesia and Effect
Business for Global market
Summary
Indonesia has experienced at program National Car. The first at middle 90 s
( Timor) and this program is protested by all maker car from Japan, USA and
Europe, caused by financial crisis 1998 and facility tax is cancelled by IMF
and Soeharto goverment finished, National Car program / Timor is finished.
2nd program for National Car, there is LCGC.
That is The Breaktrough Policy of former President Mr SBY. 5 Car
maker
(Toyota, Daihatsu, Suzuki,Honda and Nissan ) support this program in the
other hand , House of Representative is not full support and the first
period
recent goverment not support to, but until right now the program still
running and success
For Car maker that is Business innovation , to boost market not only for
local market but to global market. Data 2015 from GAIKINDO ( Assosiation
of Indonesia Automotive Industry ) sales of LCGC 165,434 , 16,3% from
National sales and some export for Global Market for Philiphina, Malaysia
and Pakistan.
This paper is to study how LCGC effect to Indonesia in general and direct
economic effect to Indonesia and how is effect business to the owner
brand of LCGC?
1. Preparation Agenda
The issue of policy is a product or a function of their good debate about the formulation, details, explanations as well as an
assessment of a particular issue. But not all issues can be entered into a policy agenda. Policy agenda should be based on the degree
of urgency and the essence of the policy, as well as stakeholder involvement. A policy should not obscure the importance level, the
essence, and stakeholder engagement.
2.Formulasi policy
Problems that have been included in the policy agenda was discussed by policy makers. These problems are defined and subsequently
look for the best solutions. Solving the problem comes from a variety of alternative or selection policy. Similarly, the struggle of an
issue to the agenda of the policy, the policy formulation alternative phase each competing to be selected as the measures taken to
solve the problem.
The global competition in the field of economy and trade has led to various impacts,
which is characterized by various trends below (Hitchkock 2009; Unido 2010 in GumbiraSa'id, 2012):
Increased product prices has led to the seizure of raw materials for food, feed and
energy
Increased income of the people has caused demand for high value products is increasing
and diverse
Technological innovations produce a large increase in added value
Globalization and trade liberalization led to increased demand for cross country
Urbanization will lead to increased awareness of product quality and standards delivery
Changes in diet have led to more consumption of meat, fish and fruits
Increasing the number of women working led to an increase in demand of processed
food
Global Manufacturing has led to the growth strategy of adding value and use of
standards (Certificate).
Innovation for economic growth (Yu, 2008) requires four mutually reinforcing pillars,
namely:
(1) National Innovation System that manages a network of institutions, policies, rules and
procedures,
(2) the availability of educated labor and skilled,
(3) The information and communications infrastructure, as well as
(4) the existence of the regime and economic institutions conducive.