Jakarta. Electric vehicles are steadily gaining ground in Indonesia as consumers increasingly embrace electrified cars despite global economic uncertainty. Sales of electric and hybrid vehicles surged 69.4% in the first half of 2026 to 117,000 units, accounting for 26.8% of total passenger-car sales.

However, lower operating costs alone do not determine whether a battery-electric vehicle (BEV) is cheaper to own over the long term. Consumers also need to consider the purchase price, taxes, energy consumption, maintenance, depreciation and potential battery replacement costs. Together, these factors make up a vehicle’s total cost of ownership (TCO), meaning the more economical option will vary depending on each driver’s circumstances.

Economist Riyanto Umar of the Institute for Economic and Social Research at the University of Indonesia (LPEM UI) said BEVs are indeed cheaper to operate on a day-to-day basis than internal combustion engine vehicles (ICEVs).

“The day-to-day operating cost of a BEV is certainly lower than that of an ICEV, especially with current fuel prices,” Riyanto said Wednesday.

According to Riyanto, the cost difference is largely driven by energy expenses. Charging an electric vehicle generally costs less than buying gasoline to travel the same distance. BEVs also require less routine maintenance than ICEVs because they have fewer mechanical components that need servicing.

For every 100 kilometers driven, electric vehicles are significantly cheaper to operate than conventional gasoline-powered cars. In terms of energy consumption costs, an electric vehicle can reduce expenses by as much as 70% to 75%.

Riyanto said the gap in total ownership costs between electric and conventional vehicles has narrowed as EV prices have become more competitive while fuel prices remain relatively high.

“With BEV prices now much closer to those of ICEVs and fuel prices remaining relatively high, the total cost of ownership of a BEV is now on par with that of an ICEV, even after taking tax into consideration,” he said.

Resale Value and Battery Costs Remain Main Considerations

On the other hand, Yannes Martinus Pasaribu, an automotive expert at the Bandung Institute of Technology (ITB), warned that electricity and routine maintenance costs are only part of a vehicle’s total cost of ownership. Consumers should consider all expenses incurred from the time a vehicle is purchased until it is sold or retired.

“When discussing the total cost of ownership over a 10-year period, I don’t think the calculation can rely solely on lower electricity costs or reduced maintenance,” Yannes said.

He acknowledged that electric vehicles can deliver substantial operating-cost savings, particularly for drivers who drive frequently.

“EVs do offer significant operational savings compared with gasoline- and diesel-powered vehicles,” he said.

However, he added that several factors could increase the long-term cost of owning an electric vehicle. One of the main concerns is that EVs may depreciate faster than conventional vehicles, resulting in lower resale values.

According to OLXmobbi, depreciation of electric vehicles in Indonesia can be relatively steep, reaching 50% after three to four years of use. This sharp drop is significantly faster than the average depreciation of gasoline-powered cars. Conventional vehicles typically have more stable depreciation, losing about 15% to 25% of their value in the first year before declining by about 5% to 10% in subsequent years.

The rapid pace of EV technology development could also cause older models to become outdated more quickly. In addition, battery health is expected to become one of the key factors affecting the resale value of used electric vehicles.

Yannes added that battery replacement costs should also be taken into account, particularly if the battery needs to be replaced after the warranty period expires. The battery could become one of the largest ownership expenses over the vehicle’s lifetime.

The battery is the most expensive component of an electric vehicle, with its cost estimated at between 30% and 40% of the selling price of a new EV.

“On the other hand, several important factors must also be considered, including the sharp decline in resale value, the rapid advancement of battery technology, and the cost of battery replacement,” he said.

It’s Not a One-Size-Fits-All Decision
Yannes said electric vehicles are not automatically the most economical choice for every consumer. An EV’s cost-effectiveness depends on several factors, including driving habits, daily mileage, access to charging infrastructure, ownership period and the buyer’s financial situation.

For drivers who travel long distances, lower energy costs can help offset the higher purchase price more quickly. EVs are also well suited to corporate and commercial fleets that operate intensively.

By contrast, for drivers with relatively short daily commutes, small gasoline-powered cars may remain the more practical option because of their lower upfront cost and more stable resale value.

“Under certain circumstances, an EV can be the more economical choice. In others, a well-maintained ICEV may do a better job of retaining its value as an asset,” Yannes said.

Ultimately, there is no universal answer to whether an electric vehicle or a gasoline-powered car is cheaper to own. While lower charging costs remain one of the biggest advantages of EVs, consumers should base their purchasing decisions on total cost of ownership, taking into account the purchase price, operating and maintenance costs, resale value, and potential battery replacement costs over the vehicle’s lifetime.

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