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Time to switch rides as fuel gets pricey, EV carmakers say
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Visitors look at electric vehicles at a public charging station on the premises of state electricity company PLN in Palu, Central Sulawesi, on March 9, 2022. (Antara/Mohamad Hamzah)
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lectric vehicle producers in Indonesia are expecting drivers to switch to battery power as rising gasoline and diesel prices make combustion engines less appealing.
The prices of two subsidized fuel brands sold by state-owned oil giant Pertamina, RON-90 gasoline Pertalite and diesel fuel Solar, increased by more than 30 percent on Sept. 3 to Rp 10,000 and Rp 6,800 per liter, respectively.
Meanwhile, Pertamina’s RON 92 fuel Pertamax also saw a 16 percent increase to Rp 14,500 per liter last week, which followed a 40 percent increase in April.
The government defended the price hikes as a measure to prevent the subsidy budget from swelling out of control, but many warned the move would further stoke inflation, reduce popular purchasing power and put the targeted 5 percent GDP growth for this year out of reach.
Tenggono Chuandra Phoa, secretary-general of the Indonesian Electric Vehicle Industry Association (Periklindo), told The Jakarta Post on Monday that he was sure the nationwide fuel price hikes would prompt consumers to switch to battery-powered cars and motorcycles.
“With the hike in fuel prices, it’s certain that more people will use EVs,” Tenggono said, adding that daily running costs of EVs were roughly 80 percent below those of combustion engine vehicles.
Read also: New car emissions tax in effect, but poised to little spur EV demand
