Middle East Crisis Serves as Wake-Up Call, Indonesia Urged to Accelerate Electric Vehicles

Geopolitical unrest in the Middle East, which has sparked a surge in global oil prices, is considered a pivotal moment for Indonesia to accelerate the transition to electric vehicles (EVs). The closure of the Strait of Hormuz, disrupting global oil supplies, serves as a warning regarding Indonesia’s high dependence on imported fuel oil (BBM), which has long been the backbone of the transportation sector. Executive Director of Satya Bumi, Andi Muttaqien, stated that this situation should mark a turning point in national energy policy. “Dependence on imported BBM makes Indonesia highly vulnerable to global crises like the current one. This must become a momentum to accelerate the shift to clean energy and electrification, particularly in the transportation sector,” he said in a written statement on Sunday (5/4/2026). However, acceleration on the downstream side, namely public adoption of electric vehicles, is deemed suboptimal. Andi highlighted that the massive expansion of nickel mining is instead causing environmental and social impacts, such as deforestation, pollution, and conflicts with local communities, including in Southeast Sulawesi. “Aggressiveness in the upstream sector without accompanying equitable distribution downstream will only amplify the negative impacts on communities affected by the energy transition,” he said. In agreement, Policy Strategist Coordinator of CERAH, Dwi Wulan Ramadani, assessed that automotive industry players need to take a more active role in promoting electric vehicle adoption. “The role of automakers will be crucial in helping to accelerate the development of the EV market in Indonesia; of course, this requires government support in creating EV demand,” she said. According to Dwi, accelerating vehicle electrification not only impacts emission reductions but also strengthens national energy resilience. She believes a swift response to the shift to electric vehicles will help Indonesia reduce dependence on imported fossil fuels. Moreover, from an economic perspective, electric vehicles are considered more efficient. Dwi noted that the operational costs of electric vehicles can be 2–3 times cheaper per kilometre compared to fossil fuel vehicles, especially because electricity prices are more stable than global oil prices. In addition, reducing BBM imports has the potential to improve the trade balance while curbing the energy subsidy burden, which currently accounts for around 20 percent of the State Revenue and Expenditure Budget (APBN). Not only private vehicles, but electrification is also deemed necessary to expand to the public transportation sector.