EN.malanginspirasi.com – The escalating conflict in the Middle East, particularly the heightened tensions between Iran, Israel, and the United States, has caused global oil prices to surge sharply. Brent crude briefly surpassed US$110 per barrel and is approaching US$120 in the worst-case scenario due to threats of supply disruptions through the Strait of Hormuz.
This spike is immediately affecting fuel prices (BBM) in Indonesia and overall transportation costs. For many consumers in Indonesia, the situation has become a “hidden blessing” for electric vehicles (EVs). The reason is simple: the operating costs of electric cars are far lower and more stable than gasoline or diesel vehicles, since electricity prices are not directly tied to global oil volatility.
Why This Is Advantageous for Electric Vehicles
- Electricity charging costs per kilometer remain much cheaper than refueling with gasoline, especially as fuel prices continue to climb.
- Consumers are now recalculating the total cost of ownership (TCO), where EVs win in the long term despite higher upfront purchase prices.
- Globally, oil price spikes have historically accelerated the shift to eco-friendly vehicles — as seen after the 1970s oil crisis and the 2022 Ukraine war.
In Indonesia, a similar trend is already emerging. Several automakers report rising consumer interest in EVs as fuel prices increase.
However, there is an important caveat: higher oil prices can also raise logistics and imported component costs, potentially pushing up prices for all vehicles — including EVs — in the short term.
GAIKINDO’s Official Response
The Indonesian Automotive Industry Association (GAIKINDO) welcomes this development. In an official statement, GAIKINDO noted that the global oil price surge triggered by the Middle East conflict could drive EV sales. While the increase is not expected to be massive in the immediate future, the association is confident that demand will grow as consumers become more aware of the stable and economical operating costs of electric vehicles.
GAIKINDO Secretary General Jongkie D. Sugiarto stressed that this momentum must be seized, especially by accelerating local production (CKD) to prevent EV prices from jumping once import incentives end in 2026.
The association is also coordinating closely with the government to extend existing incentives or introduce new ones to maintain purchasing power and speed up the transition to electric vehicles.
Long-Term Prospects for Indonesia
Indonesia holds a major competitive advantage as the world’s largest nickel producer — the key raw material for EV batteries.
The government is targeting mass local battery production between 2026 and 2030, which should make EVs increasingly affordable. National targets include 2 million electric cars and 12 million electric motorcycles on the road by 2030, along with massive savings on fuel imports worth hundreds of trillions of rupiah annually.
Nevertheless, challenges remain:
- Charging infrastructure (SPKLU) is still limited, especially outside Java.
- Without new incentives, EV prices could rise 10–20% starting in 2026.
- If the conflict ends quickly and oil prices drop sharply, the current momentum for EV adoption could slow down.
Overall, industry experts and stakeholders agree: a prolonged Middle East conflict strengthens the case for energy transition. For Indonesian consumers, now is the right time to seriously consider an electric vehicle — not only for environmental reasons, but also for significant long-term savings in their wallets.
