Head of the Center for Food, Energy, and Sustainable Development at INDEF, Abra Talattov, stated that the use of electric vehicles in Indonesia continues to show positive growth. During the 2026 Christmas and New Year holiday period, 234,136 charging transactions were recorded, with total electricity consumption reaching 5,619 Mega Watt hours (MWh).
This, he continued in a statement in Jakarta on Tuesday, reflects the increasing shift in transportation energy to cleaner sources. However, the national EV market is currently at a crucial stage.
"The EV growth momentum that has been established needs to be maintained to prevent Indonesia from deepening its dependence on fossil fuels. If the momentum stalls, the pressure on energy subsidies could actually increase," said Abra.
Throughout 2025, he estimated that wholesale electric car sales would reach 103,931 units, a 141 percent increase compared to the previous year. This figure equates to nearly 13 percent of the national automotive market share, indicating growing public acceptance of EVs.
He emphasized that EV development is not solely about sales but also encompasses strengthening the automotive industry, downstreaming nickel and batteries, expanding Public Electric Vehicle Charging Stations (SPKLU), and ensuring reliable electricity supply.
On the other hand, he added, external pressures are also looming, with geopolitical tensions in a number of regions risking a spike in global oil prices, which could have a direct impact on rising domestic fuel prices and swelling energy subsidies.
"In an uncertain global situation, Indonesia needs to take anticipatory steps to protect its state budget. Promoting electric vehicles is one strategic tool," he said.
In this regard, INDEF is urging the government to reconsider fiscal incentives, such as Government-Borne VAT (PPN DTP) for electric vehicles and related components, particularly those that meet the Domestic Component Level (TKDN).
According to Abra, EV incentives not only boost demand but also contribute to job creation, accelerated investment, and reduced energy subsidy burden.
For the record, the energy subsidy allocation in 2026 is projected to reach IDR 210 trillion, with the risk of a fiscal deficit approaching or even exceeding 3 percent of Gross Domestic Product (GDP).
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