Indonesia is reimagining how its cities move. Through a series of national and local programs, the country is working to electrify public transport and reduce its dependence on private vehicles—an effort that speaks not only to climate goals but to the everyday wellbeing of millions.
At the heart of this shift is a bold national target: 90 percent of urban mass transport electrified by 2030, rising to full electrification by 2040. The government also aims to deploy 13 million electric motorcycles and 2 million electric cars by 2030. These figures reflect a growing recognition that transport reform is inseparable from energy policy, public health, and social equity.
The push began with Presidential Regulation No. 55/2019, which laid the groundwork for electric vehicle development. It was followed by Regulation No. 79/2023, which expanded the scope to include public transport electrification.
Yet despite these commitments, Indonesia’s Nationally Determined Contributions (NDCs) under the Paris Agreement still exclude transport electrification—highlighting a gap between ambition and formal accountability.
Prioritising Public Health
Indonesia’s transport sector is responsible for nearly a quarter of its energy-related emissions. In cities like Bandung, where 87 percent of trips are made by private vehicles, congestion and pollution have become chronic.
The economic cost is staggering—IDR 77 trillion lost annually to traffic delays and health impacts. But the emotional toll is harder to quantify. For many, commuting means exposure to noise, fumes, and stress. Children and older adults are especially vulnerable, with rising rates of respiratory illness linked to poor air quality.
Electrifying public transport offers a way out. It’s not just about cleaner engines—it’s about quieter streets, breathable air, and a more dignified daily experience. When buses run reliably and affordably, people can reclaim time, safety, and peace of mind.
Local Momentum, National Gaps
Jakarta has emerged as a leader in the transition. Transjakarta, the city’s bus rapid transit operator, has committed to fully electrifying its fleet by 2030. Early results are promising. Electric buses cost 5 percent less per kilometre to operate and offer a smoother, quieter ride. Riders report feeling less fatigued and more comfortable, especially during peak hours.
Other cities are following suit. Medan has introduced 60 e-buses, Surabaya 12, and Pekanbaru has begun piloting electric feeder services that connect outlying areas to main transit corridors. These feeder services are especially important in cities where informal transport—like angkot and motorbike taxis—fills the gaps left by formal networks.
Yet progress is uneven. Many local governments face fiscal constraints, institutional instability, and unclear demand signals. Without binding national mandates or long-term funding, operators are hesitant to invest. The risk of stranded assets looms large, especially for smaller cities without the scale or political clout of Jakarta.
Incentives and Industry Hesitation
To encourage adoption, the government offers VAT rebates and subsidies of up to IDR 10 million for electric motorbikes. For buses, manufacturers are incentivised to meet local content requirements through CKD (completely knocked down) assembly, with more than 40 percent of components sourced domestically. This supports the domestic EV industry and aligns with broader industrial policy goals.
But the focus on private vehicles has drawn criticism. While motorbike subsidies are generous and widely publicised, support for public transport electrification remains limited. Operators often struggle to access financing, and procurement processes are slow and opaque. Without clear demand forecasts or operational guarantees, manufacturers are reluctant to scale up production.
The result is a fragmented landscape. Some cities push ahead with pilot programs, while others wait for clearer signals. Riders are caught in the middle—hopeful, but unsure when or if their daily commute will improve.
Systems Thinking and Climate Co-benefits
Indonesia’s transport transition is not just about vehicles—it’s about systems. The Sustainable Asset Valuation Initiative (SAVi), led by the International Institute for Sustainable Development, has modelled the long-term benefits of electrifying public transport. The findings show that most societal gains—reduced emissions, improved health, lower costs—come from investing in buses, not cars.
Pilot programs under the UNFCCC’s NAMA framework have begun integrating low-carbon mobility into broader urban planning. Cities like Batam, Manado, and Medan are developing transport strategies that align with climate resilience, public health, and inclusive growth. These models treat mobility not as a technical challenge, but as a social one—centred on access, dignity, and care.
Still, national policy has yet to fully embrace this approach. Transport electrification remains absent from Indonesia’s NDCs, and coordination between ministries is limited. Energy, transport, and urban planning often operate in silos, making it difficult to align goals and budgets.
Inclusion and Everyday Use
One of the most pressing gaps in Indonesia’s transition is inclusion. Semi-formal transport services—like angkot, ojek, and cooperative-run minibuses—are often excluded from electrification plans. These services are vital, especially in smaller cities and peri-urban areas, where formal networks are thin or nonexistent.
Pekanbaru’s feeder service pilot offers a glimpse of what inclusive electrification could look like. By integrating electric minibuses into the city’s main transit system, the program improves access for low-income riders and reduces emissions in underserved areas. Drivers receive training and support, and routes are designed with community input.
But such models are rare. Most electrification efforts focus on large fleets and urban centres, leaving behind the very people who rely most on public transport. Without meaningful engagement and tailored support, the transition risks deepening existing inequalities.
Infrastructure is another challenge. Charging stations are unevenly distributed, and maintenance capacity is limited. In some cities, electric buses sit idle due to lack of spare parts or trained technicians. Riders report inconsistent service and long wait times, undermining trust in the system.
Indonesia’s Green Transit: A Call for Grounded Acceleration
Indonesia’s electrification programs are a step toward a more breathable, equitable future. But for the transition to succeed, it must feel like care—not control. That means centring public transport in national climate policy, funding it accordingly, and designing systems that reflect the dignity and needs of everyday riders.
Binding national commitments are essential. Without them, local governments and operators will continue to face uncertainty. Fiscal support must be scaled up, with clear pathways for procurement, maintenance, and workforce development. Semi-formal services must be included, not sidelined. And infrastructure must be planned with users in mind—not just vehicles.
Above all, the transition must be emotionally sustainable. It must offer relief, not just reform. When a child boards a quiet, clean bus and arrives at school on time, breathing easier and feeling safe—that’s the real measure of success.
Indonesia has the vision. What the country needs now is the resolve to see it through.
For more news and insights, stay tuned to the AIC website.