Indonesian Political, Business & Finance News

Fuel Price Hike Makes Electric Motorcycles Increasingly Attractive to the Public

| | Source: KOMPAS Translated from Indonesian | Energy
Fuel Price Hike Makes Electric Motorcycles Increasingly Attractive to the Public
Image: KOMPAS

JAKARTA, KOMPAS.com - Global geopolitical turmoil and energy price pressures are viewed as an opportunity to accelerate Indonesia’s energy transition, particularly in the electric vehicle (EV) sector.

Indonesia’s dependence on imported energy could also be reduced through accelerated electrification, especially in the transportation sector.

The Indonesian Electric Motorcycle Industry Association (AISMOLI) believes this situation opens up greater opportunities for the public to switch to electric vehicles.

AISMOLI General Chairman Budi Setiyadi said that people will start considering vehicles with lower operating costs when fossil fuel prices are unstable.

“According to AISMOLI, yes, this situation can be a positive momentum,” he told Kompas.com on Monday (11/5/2026).

“So, accelerating the adoption of electric motorcycles can help reduce the transportation cost burden for the public while supporting national fuel savings,” he added.

However, accelerating the adoption of electric vehicles still faces several challenges.

Budi explained that the main obstacles come from the initial vehicle price, consumer education, as well as charging and battery swap infrastructure.

After-sales services and regulatory certainty are also still a market concern.

“Incentives are still important, especially for the initial phase of market formation, as they can help bridge the price gap between electric motorcycles and petrol motorcycles,” he said.

Policy certainty is also seen as an important factor in maintaining the growth of the national electric vehicle industry.

According to Budi, the electric vehicle industry already has readiness in terms of investment, production, and market. However, the ecosystem still needs clear and aligned regulatory direction.

“Good policies are not enough, but they must be aligned and implemented in the field with the same interpretation. Policy certainty is a valuable commodity and is needed by the industry to invest, produce, and serve the public earnestly,” Budi stated in an official remark on Monday (27/4/2026).

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