Rising fuel prices which are piling the pressure on Indonesia's transport sector are seeing more motorists contemplate making the switch to electric vehicles (EVs) as a more affordable alternative to the increasing costs of running traditional fossil fuel-powered vehicles.
Amid global geopolitical tensions and supply cuts by major oil producers, higher fuel prices have become a widespread challenge, as the ongoing conflict in the Middle East and the disruption to shipping through the Strait of Hormuz -- a vital passageway which typically carries around one-quarter of global seaborne oil trade -- continues to cause major concern.
For Indonesia, where the energy demand continues to rise, the impact is particularly pronounced. Taxi and ride-share drivers are among the hardest hit, as climbing fuel costs eat into already limited incomes.
"The impact of rising fuel prices on us drivers is quite severe," said Jakarta-based driver Andreas Rudianto Raja.
Against this backdrop, EVs are gaining traction as a more stable and affordable option, with their lower running costs and reduced dependence on fuel mean they are increasingly seen as a more practical choice in these fraught and uncertain times.
Chinese automakers such as BYD are already benefiting from the shift and are reporting a surge in customer interest.
"The impact of fuel prices on BYD has been quite significant, really substantial. The number of people visiting our dealerships has surged. We used to see just 10 or 20 visitors a week. That figure has now doubled, and in some areas, even tripled. Whether people are simply curious or actually making a purchase, we can clearly see this is having a profound impact on electric vehicle sales," said BYD brand consultant Soekarno Rizky Maulana Putra Elambang.
However, experts caution that Indonesia's EV ecosystem is still developing. Infrastructure such as charging networks remains limited, and domestic supply chains—particularly for batteries—are not yet fully established.
Some warn that without stronger local capacity, the country risks replacing one form of dependence with another.
"There is the infrastructure required for power supply, specifically charging stations, and the need to prepare the domestic industry for components such as batteries. While current incentives such as zero-percent down payments and VAT exemptions are effective in boosting demand, we must look ahead. Within eight to 10 years, those batteries will need to be replaced. Is our domestic industry prepared to stop relying on imports?" said Lukitawaty Anggraini, a local economist.
Soaring fuel prices sees demand for electric vehicles increase in Indonesia
