Use of Electric Transportation Said to Reduce Fuel Subsidies

The House of Representatives Commission XII is pushing for massive transportation electrification as an innovative step to reduce the burden of fuel (BBM) subsidies and strengthen the state budget (APBN) structure. Deputy Chairman of Commission XII, Sugeng Suparwoto, stated that electricity must become the backbone of our energy in the future. “Based on study calculations, the use of electricity in the household and transportation sectors can save approximately 30 percent compared to the use of subsidised fossil energy,” he said in his statement in Jakarta on Wednesday (15/4/2026). According to him, the current national electricity supply capacity needs to be utilised optimally to reduce public dependence on BBM and LPG. He assessed that shifting energy consumption to electricity would make energy subsidies more targeted. “This is a strategic step to ensure our state budget burden is reduced. By making electricity the main backbone of national energy, we not only switch to clean energy but also create significant budget efficiency,” he explained. Furthermore, he emphasised that transportation electrification, especially for government operational vehicles and public transport, can be a measurable initial step to significantly reduce the consumption of subsidised BBM. In addition, the utilisation of abundant domestic electricity is also seen as able to reduce pressure from energy imports, thereby strengthening national energy resilience while maintaining long-term fiscal stability.