Non-Subsidised Fuel Price Hike Seen as Momentum to Accelerate Electric Vehicle Adoption

The increase in non-subsidised fuel prices is considered a momentum to accelerate the adoption of electric vehicles in Indonesia. Amid rising transportation costs and the weakening of the rupiah against the US dollar, electric vehicles are seen as an alternative to reduce public expenditure while simultaneously lowering dependence on imported fuel. Chairman of the Indonesian Electric Motorcycle Industry Association (AISMOLI), Budi Setiyadi, stated that the current situation opens an opportunity for the government to speed up the electric vehicle transition, supported by high public acceptance. “This survey shows that the Indonesian public is ready, understands the benefits, and is anticipating the acceleration of the energy transition in transportation. The long-term effect will be a reduction in high fuel subsidies,” Budi said in a statement on Thursday (18/6/2026). Based on a Kompas Research and Development survey conducted in April 2026 in Jakarta, Surabaya, Bandung, Medan, and Makassar, 98 percent of respondents expressed support for the use of electric vehicles in Indonesia. Furthermore, 94.8 percent of respondents believe the government should accelerate the electric vehicle transition through various supporting policies. The survey also indicated that 81.1 percent of respondents who do not yet own an electric vehicle are willing to switch if electric vehicles can provide better economic, health, and environmental benefits. Meanwhile, 96.8 percent of electric vehicle users stated they are willing to recommend electric vehicles to others. AISMOLI believes this high level of public support must be met with policies that maintain the affordability of electric vehicles and strengthen the domestic industrial ecosystem. A total of 89.2 percent of respondents hope that electric vehicle prices will become more affordable, while 95.8 percent support increasing the domestic production of low-emission vehicles. The same survey also recorded that 73.5 percent of respondents believe public aspirations can drive the acceleration of electric vehicle policies. Beyond environmental factors, economic considerations are cited as the main reason the public is beginning to turn to electric vehicles. Data from the Institute for Transportation and Development Policy (ITDP) shows that the operational costs of electric motorcycles are approximately 74 to 83 percent lower compared to petrol-powered motorcycles. AISMOLI Secretary General Hanggoro Ananta Khrisna stated that policy certainty is a crucial factor in sustaining the growth of the national electric vehicle industry. “Both the industry and consumers have shown equal readiness. What is needed now is consistent policy certainty so that investment can grow and the economic benefits of electric vehicles can be felt more widely by the public,” Hanggoro said. According to AISMOLI, sustainable policy support will not only accelerate electric vehicle adoption but also strengthen the national industry, expand investment, and reduce long-term dependence on fuel imports.