Government Pushes Electrification of Buses and Trucks to Achieve Net Zero Emissions by 2060

In an effort to accelerate the transition to environmentally friendly transportation, the Indonesian government, in collaboration with the World Resources Institute (WRI) Indonesia, hosted the Indonesia Zero Emission Heavy-Duty Vehicle Summit 2025 in Jakarta. This event is a key part of the Road to International Conference on Infrastructure (ICI) 2025, which will be held on June 11–12, 2025.

With the theme “Shaping the Future of Zero-Emission Freight and Public Transport,” the forum brought together government, industry, academia, financial institutions, and civil society to discuss the electrification of heavy-duty transportation such as buses and trucks as a central strategy to achieve the Net Zero Emission 2060 target.

Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), emphasized that transitioning from fossil fuels to renewable energy is a strategic step toward achieving national energy independence.

“Heavy vehicles play a vital role in Indonesia’s economy. However, they are also among the largest contributors to emissions in the transport sector. Therefore, decarbonization must be pursued comprehensively through reforms in procurement, financing, and the development of supporting infrastructure,” said AHY in his remarks on Wednesday (May 28, 2025).

Until now, the government has promoted the use of private electric vehicles through various incentives, such as VAT exemptions, luxury tax relief, and import duty reductions. These efforts have led to an increase in the number of private electric vehicles in recent years.

However, AHY highlighted that the next major challenge is the electrification of heavy-duty vehicles—a sector responsible for about 23% of total CO₂ emissions from national energy use and one of the main sources of air pollution. Their energy consumption is also high and largely dependent on imported fossil fuels.

“We can no longer delay the electrification of buses and trucks. This is not only about reducing emissions but also about strengthening national energy security going forward,” he stressed.

Two Key Initiatives Launched

On this occasion, two strategic initiatives were announced:

1. Indonesia Freight Decarbonization Accelerator (IFDA) – a collaborative platform to support an inclusive, data-driven transition to zero-emission freight transport.
2. WRI Indonesia’s latest study on strategies for bulk procurement of electric buses and the readiness of cities to adopt electrification, including technical and financial aspects.

Rachmat Kaimuddin, Deputy for Basic Infrastructure Coordination, added that the government is currently designing various incentives and financing schemes to encourage the adoption of private electric vehicles. WRI Indonesia noted that the heavy-duty vehicle sector contributes around 23% of energy-related CO₂ emissions and still heavily relies on imported fossil fuels.

Key Findings from WRI Indonesia Study

• Heavy-duty vehicles make up only 3.9% of total vehicles but contribute 35.6% of carbon emissions in the land transport sector.
• Without truck electrification, emission reduction targets for the transport sector will only reach 71% of projections.
• A demand aggregation approach for procuring 14,000 electric buses in various cities could reduce costs by up to 20%.
• The study also highlights the need for charging infrastructure along key logistics corridors.

Arief Wijaya, Managing Director of WRI Indonesia, emphasized that electrifying heavy-duty vehicles presents a major opportunity to reduce emissions and operational costs. “We hope this study can serve as a reference for cross-sector strategic steps. We will continue to support this transition process through research and policy advocacy,” he said.

Concrete Steps Toward a Clean Future

Through IFDA and its latest research, Indonesia is reinforcing its commitment to building an inclusive, data-driven zero-emission freight transport system. IFDA will serve as a collaborative space for government, industry players, and technology providers to address the challenges of funding and infrastructure for truck electrification.

The event was also attended by key figures, including Suzanty Sitorus from ViriyaENB and the Country Coordinator of the Drive Electric Campaign, who shared insights on the importance of clean energy transition.

“Truck and bus electrification is not just about the environment—it’s also about national energy security,” he concluded.