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ITDP launches study on road-based urban public transportation electrification
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(Courtesy of ITDP 2024)
T
he Institute for Transportation and Development Policy (ITDP) Indonesia, in collaboration with the Transportation Ministry and supported by ViriyaENB, has successfully completed a study on the Road Map and National Incentive Program for Road-Based Urban Public Transportation Electrification, which aims to support the acceleration of bus electrification in urban areas.
The document for the study was presented in a handover ceremony between ITDP Southeast Asia director Gonggomtua Sitanggang and Transportation Minister Budi Karya Sumadi during the Sustainable E-Mobility Event: Upscaling Bus Electrification Nationwide event on May 21.
Moderated by The Jakarta Post president and chief revenue officer Maggie Tiojakin, the event was attended by ITDP CEO Heather Thompson and ViriyaENB executive director Suzanty Sitorus.
The ITDP’s study found that the low commitment of local governments to providing good public transportation and the high investment costs of adopting battery-based electric vehicles (KBLBB) are some of the main obstacles to the electrification of urban public transportation.
In addition, the study also included assessments of the readiness for electrification of public transportation and adoption of KBLBB, as well as other pressing factors such as air pollution and congestion in 98 urban areas across Indonesia.
Based on these criteria, the ITDP recommends 11 priority cities for accelerating the electrification of public transportation, namely Jakarta, Semarang, Pekanbaru, Batam, Medan, Bandung, Surabaya, Denpasar, Yogyakarta, Bogor and Padang.
The implementation of 6,600 electric buses in the 11 priority cities is projected to have the potential to reduce greenhouse gas emissions by up to 25 percent by 2030, equivalent to 1 million tonnes of CO2eq.
As such a plan requires investment of more than Rp 40 trillion until 2030, the government is advised to provide incentives in the form of discounts on electric bus purchases to encourage the increased adoption of electric buses, especially in the early stages of implementation. Regular monitoring and evaluation of the program also needs to be carried out to ensure that the incentives are right on target.
Apart from providing fiscal incentives, non-fiscal interventions that have fiscal implications also need to be implemented to reduce high capital costs, including bulk procurement of electric buses to achieve economies of scale, increasing the supply of electric bus fleets for public transportation through the leasing bus-as-a-service scheme and extending the duration of multi-year contracts between government and public transportation operators.
In addition, the government is also advised to mandate vehicle manufacturers to stop producing conventional buses and immediately switch to producing electric counterparts.
