Jakarta—Accelerating the adoption of electric vehicles (EVs) in Indonesia has the potential to save up to Rp4.984 trillion in energy subsidy budgets by 2060. This is revealed in the latest International Council on Clean Transportation (ICCT) report, Roadmap to Zero: The Pace of Indonesia’s Electric Vehicle Transition.
ICCT Managing Director Ray Minjares revealed that the report details two EV adoption scenarios to achieve the net-zero emissions (NZE) target by 2060. In the baseline scenario, two- and three-wheelers are projected to reach 100 per cent full adoption by 2040, while four-wheelers, buses, and trucks, both medium and heavy, are expected to reach a similar target by 2045.
Minjares said in a statement on Sunday, February 16, that if Indonesia implements the net-zero scenario, liquid fuel consumption until 2060 will be reduced by around 5.1 to 6.7 billion barrels of oil equivalent. This means that potential energy subsidy savings could reach between IDR 3,960 trillion and IDR 4,984 trillion, he said.
The ICCT report also presents a more optimistic best practice scenario. In this scenario, two- and three-wheelers are expected to reach full adoption sooner, by 2037, while four-wheelers, buses and trucks could reach 100 per cent adoption by 2040.
According to Minjares, both scenarios benefit the economy and the environment. Switching from fossil fuel vehicles to EVs is estimated to reduce carbon dioxide (CO2) emissions by 2.4 to 3.1 gigatons by 2060.
He said that the transportation sector in Indonesia accounts for about 22 per cent of total energy emissions, and pollution from burning fossil fuels not only impacts the environment and results in around 4,500 premature deaths each year, excluding increased cases of respiratory diseases, lost work days, and other social impacts.
ICCT said that accelerating the transition to electric vehicles requires stronger government policy support. One step is to accelerate the development of charging infrastructure, provide incentives for EV manufacturers and consumers, and increase investment in more efficient battery technology.
Minjares expressed his hope that the government can take the findings in the report into consideration to further encourage the transition to electric vehicles. He said that in addition to reducing dependence on fossil fuels, this policy can also improve air quality, reduce the burden of energy subsidies, and improve overall public health. (Hartatik)
