Euro 4 Fuel Policy: What Benefits Do Citizens Expect?

A survey by the Center of Reform on Economics (CORE) Indonesia shows that a majority, or 74.4%, of respondents are willing to bear the increased price of Euro 4-compliant fuel.

Euro 4 is an emission standard set by the European Union, requiring fuel with a sulfur content of 50 ppm (parts per million). Currently, Indonesian fuels meeting the Euro 4 standard include Pertadex 53, Pertamax Green 95, and Pertamax Turbo 98.

This policy aims to improve fuel quality, reducing air pollution from vehicles.

Of those who agree, 38.1% of respondents expect the Euro 4 fuel policy to improve fuel efficiency.

Respondents also anticipate benefits such as improved health (20.3%), cleaner air (14.7%), and more advanced technology (14.5%) through the implementation of the Euro 4 fuel policy.

Furthermore, 7.1% of respondents hope this policy will mitigate climate change, and 5.3% expect other benefits.

However, the Euro 4 fuel policy also has perceived negative impacts. These include higher vehicle taxes (39.9%), higher fuel prices (26.4%), and higher vehicle prices (14%).

The CORE survey reveals that the average maximum price respondents are willing to pay is Rp11,938 per liter for Euro 4 gasoline and Rp8,739 per liter for Euro 4 diesel.

The survey was conducted in December 2024, involving 394 respondents. The breakdown is 66% female and 34% male respondents. 24.9% of respondents work in the formal sector, 48.5% in the informal sector, and 26.7% are unemployed and not part of the workforce.