SOEs Ministry to Swap EVs for Hybrid Vehicles as Official Cars Following Budget Cuts
SOEs Ministry's transportation mode will switch from electric to hybrid vehicles, which are more cost-effective due to government budget cut.
TEMPO.CO, Jakarta - The Ministry of State-Owned Enterprises () plans to replace electric vehicles with hybrid ones as official cars in 2025, following the government's . Hybrid vehicles are deemed more cost-effective.
SOEs Minister Erick Thohir stated that the ministry's official vehicle budget would be reduced by up to 66 percent. Previously, he said, the ministry used leased electric vehicles as official cars.
"We are trying to opt for a more affordable alternative, switching from electric to hybrid. The original plan was to use electric cars, but now we’re choosing hybrids, which are cheaper," Erick said during a meeting with Commission VI of the Indonesian House of Representatives (DPR RI) at the parliamentary complex in Senayan, Jakarta, on Thursday, February 13, 2025.
Erick Thohir did not disclose the exact amount cut from the ministry’s vehicle budget. Overall, he proposed reducing the ministry's budget to Rp215 billion from the initial allocation of Rp277.5 billion. This figure surpasses the Ministry of Finance's target, which suggested cutting the SOEs Ministry’s budget down to Rp161.9 billion.
In January 2024, the Ministry of SOEs had provided electric vehicles as official cars for all Echelon I and II officials. At the time, Erick Thohir said the decision was made to support the government's energy transition efforts.
He explained that using electric vehicles significantly reduces costs compared to conventional cars, estimating savings of about 60 percent from the standard cost input for the State Budget (APBN).
"This actually saves 60 percent," he stated at the SOEs Ministry Office in Jakarta on Wednesday, January 3, 2024, as quoted by Antara.
, who also serves as Chairperson of the Indonesian Football Association (PSSI), added that the adoption of electric vehicles would not be limited to Echelon I and II officials but would also extend to operational vehicles across all state-owned enterprises.
These initiatives align with Presidential Instruction (Inpres) No. 7 of 2022 on the Use of Battery Electric Vehicles (KBLBB) for Official and/or Operational Vehicles in Central and Regional Government Institutions, issued by fomer president Joko Widodo.
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