Background
Background: Indonesia's Transport Emission Crisis
The transport sector accounts for 28% of Indonesia's total national emissions and emitted 44.8 million tons of CO₂ in 2023 (IESR, 2024).
Air pollution from transport contributes to more than 10,000 deaths per year (Syuhada et al., 2023).
Diesel trucks are the dominant source of NOx, CO, and black carbon in Greater Jakarta — driving both climate risk and a severe public health emergency (Mahalana et al., 2022).
Policy gaps & opportunities:
- EV progress: electrification of motorcycles and passenger cars is already underway.
- The gap: the logistics EV segment lags behind — lacking dedicated regulation, viable business models, and coordinated action across stakeholders.
- The opportunity: urban logistics offers predictable routes, strong efficiency potential, and growing operator interest.
Five structural challenges:
1. Narrow policy focus : EV regulation has centered on passenger vehicles, leaving freight largely unaddressed.
2. Fragmented coordination : ministries, operators, and financiers operate in silos with no unified logistics electrification agenda.
3. Financing barriers : high upfront costs and the absence of attractive financing models deter operators from switching fleets.
4. Charging infrastructure gap : accessible, freight-appropriate charging stations remain scarce across urban logistics corridors.
5. Data deficit: policymakers lack empirical data on operational costs, energy efficiency, and emission reductions, making evidence-based regulation impossible.