The Increase In Fuel Prices Driven To The Moment Of Transfer To Electric Vehicles

JAKARTA - The government through the Ministry of Industry (Kemenperin) stated that the current subsidized increase in fuel oil (BBM) prices could be the right momentum to switch to electric vehicles.

The Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry of Industry, Taufiek Bawazier, said that the transition to electric vehicles has a number of advantages such as cost-effective and low emissions.

"The increase in fuel prices can be a momentum for people to switch to low-emission vehicles to be able to increase efficiency as well as support efforts to reduce carbon emissions," he said in an official statement written from Surabaya, quoted Thursday, September 15.

According to Taufiek, increasing public interest in low-emissions vehicles can also reduce fuel consumption and diversify energy.

"This is the right step so that it can reduce Indonesia's dependence on global oil prices," he said.

Taufiek added, at the GIIAS 29th implementation at ICE BSD some time ago, there was a significant upward trend from the public who were interested in owning electrification technology vehicles (xEVs), both hybrid vehicles to battery-based electric motor vehicles (KBLBB).

It is explained that the large public interest can be seen from the sale of 1,594 units of xEV vehicles, with details of 1,274 BEV/KBLBB units and 320 hybrid vehicle units. This sale is much larger than EV sales during the one year period in 2021.

"The GIIAS exhibition will directly be a lever for productivity factors as well as evidence that the automotive industry, which is used as the mainstay sector, can make a real contribution to Indonesia's economic growth," said Taufiek.

For information, this automotive industry absorbs about 38,000 direct workers, and more than 1.5 million people who work along the automotive supply chain from tier-1 to tier-3. This sector is also able to provide significant foreign exchange through its export achievements.

"The export performance of the Indonesian automotive industry until July 2022 reached 238,000 units of CBU vehicles with a value of 2.95 billion US dollars, then exports of 60,000 sets of CKD vehicles with a value of 71.159 million US dollars, and exports of 10.27 million pieces of components with a value of 1.18 billion US dollars," concluded Taufiek.