Industry Minister Says Fuel Price Hike and Electric Vehicle Tax Trigger Sales Decline

JAKARTA, KOMPAS.com – Industry Minister Agus Gumiwang Kartasasmita believes that the increase in fuel oil prices, particularly diesel, is putting pressure on the automotive industry. The electric vehicle tax policy is adding to the burden.

Agus stated that the fuel price hike is triggered by global conditions. Geopolitical conflicts are affecting energy supplies and pushing prices up.

“We must admit, like it or not, our fuel prices are indeed rising due to the global situation,” Agus said in a video received by Kompas.com on Tuesday (21/4/2026).

“But we hope this does not last long, because ultimately fuel prices, including diesel, are based on market mechanisms,” he continued.

Agus assessed that the automotive industry has prepared mitigation measures. Cost pressures are not only occurring in Indonesia but also in other countries.

“I am confident that the automotive industry already has plans to mitigate the fuel price increase, including diesel,” he said.

Changes in demand are seen as a market response. Rising energy prices can drive shifts in consumer preferences.

“In addition, if there is a shift in market demand, that is normal in market mechanisms,” he continued.

“For example, now the market is starting to shift to electric cars due to fuel price issues and energy resilience, that is something normal,” he said.