Strategy to Reduce Energy Imports: Electric Vehicles and Stoves

JAKARTA – The transition to electric vehicles and electric stoves could serve as a strategic step to curb the consumption of imported energy sources, including petroleum fuels and LPG.

Fabby Tumiwa, Chief Executive Officer of the Institute for Essential Services Reform (IESR), stated that in the transportation sector, for instance, switching one million fossil fuel vehicles to electric vehicles is estimated to significantly reduce the need for crude oil.

“Replacing one million electric vehicles can reduce crude oil needs by up to 13.2 million barrels per year,” Fabby said in an official statement.

For affluent households, electric stoves are even more economical than non-subsidised LPG, while also reducing dependence on energy imports.

“If households start using induction cookers, LPG savings could reach more than 130 tonnes per year,” Fabby added.

The urgency of this electrification, according to him, is increasingly felt due to Indonesia’s high fiscal sensitivity to global geopolitical fluctuations, such as conflicts in the Middle East.

Furthermore, he believes that electrification also plays a role in curbing energy subsidies that continue to rise.

For context, energy subsidies in 2025 are recorded at Rp 203.4 trillion and are projected to increase to Rp 210.1 trillion in 2026.

“Electrification of transportation and households is key to reducing reliance on energy imports while curbing the subsidy burden,” he concluded.