"I think LCGC vehicles will be manufactured and sold in Indonesia in one to two years` time," Finance Minister Agus Martowardojo said here on Wednesday.

The Director of technology-based industry at the Industry Ministry, Budi Darmadi, said the government would accelerate the regulation process for LCGC vehicles.

"The legal process will be accelerated and tax incentives will be provided on sales of luxury goods (PPnBM). Some companies such as Honda will accelerate the construction of their plants to support the programme," he said.

According to Budi, automotive investors will invest in LCGC programmes after the regulations are issued.

"There are five automotive manufacturers who have expressed interested in producing hybrid vehicles," he stated.

Director of marketing and after-sales service PT Honda Prospect Motor (HPM) Jonfis Fandy said Honda would participate in the programme despite the possibility that green cars might affect its margins.