Session 7b: Scene-setting- Transport Sector Decarbonization Strategy in Indonesia - Dail Umamil Asri-Bappenas
DIRECTORATE OF TRANSPORTATION
DEPUTY INFRASTRUCTURE
KEMENTERIAN PPN/BAPPENAS
Bogor, March 8th 2023
Transport Sector
Decarbonization Issues and
Strategy in Indonesia
2
INDONESIA’S VISION
2045
1
ENERGY ISSUES IN
TRANSPORT SECTOR
2 3
❑ Urban Mass Public Transport System
❑ Intelligent Transportation System (ITS)
❑ Electric Vehicle
❑ Energy Transition in Shipments
❑ Green Ports
POLICIES:
DOMINANT FACTORS OF TRANSPORTATION 2045
3
There are five
dominant factors
in creating the
national
transportation
system in 2045
Determining Factors Formative Factors
Visi Indonesia 2045
Sustainable Development Goals
Digital, Knowledge
Based Economy
Revolusi Industri 4.0
Global Mega Trends
Delivery Factors
Sumber: Suyono dalam RITN, 2019
Variable Factors
Triggering Factors
INDONESIA’S VISION 2045
4
Human Development and
Mastery of Science,
Knowledge, and Technology
Sustainable Economic
Development
Equality in Development
Strengthening National
Resilience and
Governance
4 Pilar Visi Indonesia Emas2045
Indonesia has a vision to become a developed country by 2045, with the 5th highest GDP in the world and the role of
the Eastern Indonesia Region (KTI) reaching 25%. Inclusive and sustainable growth is needed to achieve this vision.
A developed
country with the
5th highest GDP
Contribution of the
KTI to the national
economy 25%
Rata-rata
pertumbuhan(%)
2035 2040 2045
2015 2020 2025 2030
Sumber: Bappenas, pemutakhiran exercise pasca COVID-19
4,890
6.278
11.332
15.287
8.387
3.870
3.430
2043
Exit from
Middle Income Trap
(MIT)
PDB perkapita
(USD)
3,6% 5,4% 5,9% 6,7% 6,8% 6,6%
2019/2020
Becoming an upper-
middle income country
(USD 4.050)
RPJMN
2020-2024 as starting point
to achieve vision 2045
SDGs2017-2030
INDONESIA’S VISION 2045
5
6 MAJORS STRATEGIES IN REDESIGNING INDONESIA’S INCLUSIVE AND SUSTAINABLE ECONOMIC TRANSFORMATION
BY UTLILIZING TPB/SDGS AS THE MAIN INSTRUMENT
Strategy #1
Competitive Human
Resources:
• Health
• Education (Education system
and character education)
• Social Protection
• Research and Innovation
Strategy #2
Productivity of Economic
Sectors:
• Labor productivity
• Agricultiral modernization
• Industrialization
• Strengthening SMEs
• Modernization of service sector
Strategy #3
Green Economy
• Energy Mix
• Clean Transportation
• Waste Management
• Climate Change
• Blue Economy
Strategy #5
Strategy #4
Digital Transformation
• Human Resources
• Digital Infrastructure
• Digital Development
• Digital Utilization
Strategy #6
Relocation of the National
Capital
• Balanced regional growth
• Source of new economic growth
Domestic Economic Integration:
(economic powerhouse)
• Connectivity Infrastructure: Superhub,
Sea Hub, Air Hub
• Development of economic corridors/
regions
• Domestic Value Chain
“Not Business As Usual To Build Forward Better”
INDONESIA’S VISION 2045
6
Developing Equitable and Integrated Infrastructure
Focusof TransportationSector Development
❑ Completion ofmainroads andconnecting routesacross theislands
❑ Mass urban public transportation andhigh-speed trains toanticipate mega-urbanization and
urbanization
❑ Seaandairtransportation tosupport mobility andinter-regional distribution ofgoods
❑ Seatransportation asamainelementofmaritimeconnectivity
❑ Development ofaerocityareasandseaplane airports
Legenda
Kota Besar/Sedang
Ruas Jalan Utama & Tol
Ruas Kereta Api
Bandara
Aerocity
Jalur Palapa Ring
PLTN
Pelabuhan
Jaringan Broadband
100 Gbps
Konsumsi listrik
7 ribu
KwH/jiwa/tahun
Biaya Logistik
8%
dari PDB
ENERGY ISSUES IN TRANSPORT SECTOR (1/3)
In 2050, we are still dependent on fossil-based
energy. Transportation will consume 1.562
million BOE (barrels of oil equivalent) of energy
in 2050, with 62% of it coming from petroleum-
based fuels.
Energy Consumption per Capita (ESDM, 2015)
7
2015 2020 2025 2030 2035
Konsumsi Per Kapita 3,71 4,34 5,78 7,33 9,35
0
1
2
3
4
5
6
7
8
9
10
BOE/Kapita
Konsumsi Per Kapita
Final Energy Requirements (in million BOE) by Sector
ENERGY ISSUES IN TRANSPORT SECTOR (2/3)
PENGARUH SUBSIDI BBM
Energy Consumption Share in
Transportation
The energy demand in
transportation sector is projected to
grow by around 4.6% annually and
will require 4.6 times more energy
by the year 2050 compared to the
base year of 2016.
It is predicted that energy
consumption for the
transportation sector will be
dominated by the use of private
vehicles (cars and motorcycles).
Energy Consumption in Transport Sector
53% of fuel subsidies are used by private vehicles. Fuel
subsidies are less appropriate in implementing the use of
renewable energy. The trend that is occurring is an increase in
fuel demand and concentration (without causing a shift to
public transportation).
8
Sumber: Indonesia Energy Outlook 2016 dan 2018
▪ Transportation is the second largest sector contributing to CO2
emissions after power generation
▪ Land transportation is the biggest contributor to CO2 emissions
10
Smart Transportation System is Needed
10
Program Highlights
(Presidential Decree 22/2017 on National Energy Master Plan)
• Establish industry of electrical and hybrid
transportation mode
• Reaching 2200 units of vehicle in 2025 for
electrical/hybrid vehicle and 2.1 Million units for two-
wheel vehicle
• Increasing electric public mass transportation
• Regulate incentive fiscal policy for production of
electric vehicle in accordance to the law
• Establish the system and charging station by 1000
units in 2025 for electric vehicles
AVOID
Reducing the need for
travel (Trip Demand
Management)
SHIFT
Shifting the Pattern of
Private Vehicle to
Public Transportation
IMPROVE
Increasing the Energy
Efficiency and Carbon
Expenditure Reduction
• Transit Oriented
Development (TOD)/
mixed use
development
• Integrate transport
and spatial planning,
including through the
development of urban
mobility plan
• Urban mass
public
transportation
• Non-motorized
vehicles
• Electric Vehicle
• Intelligent Trans
portation Syste
ms (ITS)
Sustainable Mobility Strategy (Avoid-Shift-Improve)
Sustainable Mobility Strategy promotes the use
of electric vehicle to reduce GHG emission
11
11
Urban Mass Public Transport System Development Strategy
Building metropolitan urban
transportation management
institutions to ensure the
integration of:
• Urban mobility policy
• Management and
operation of public
transport
Developing a funding scheme for mass
public transportation development
• Ensuring the role of the local
government as the person responsible
for financing the development and
operation of public transportation
• Optimizing participation/investment
of Business Entities
• Regulate the portion of Central
Government support in financing
public transport development
Institutional Funding
C
Planning
Master Plan RMP
- Focus on increasing traffic flow
and capacity, not yet taking
into account increasing
people's access to socio-
economic activities
➢Focus on fulfilling sustainable accessibility, as
measured by an increase in the number of
people who can access activities such as
schools, hospitals and workplaces due to the
construction of an infrastructure
- Administrative area based ➢Based on urban functional areas (metropolitan
statistical area approach)
- Focus on infrastructure
development planning
➢Integrated infrastructure and spatial planning
plans (for example: integration of public
transport development and TOD/mixed use
areas)
Current Conventional Master Plan vs RMP
The Urban Mobility Plan (RMP) shifted the planning approach
from the master plan (based on administrative areas, focused on
increasing traffic flow/capacity) to a mobility plan (based on
urban functional areas and focused on the accessibility of
activity centers in a sustainable manner)
12
Intelligent Transportation System (ITS)
ITS integrates a combination of sub-systems or
modules each with separate objectives into one
overall system to achieve the specified
sustainability, efficiency and safety targets.
A designated transport network does not have to
be limited to road or even surface-based
networks, it can include a combination of non-
motorized transport, road-based transport, rail,
sea travel and air travel.
INTELLIGENT TRANSPORTATION SYSTEM DEFINITION
A system that applies information and communication
technology electronically through computer software and
hardware in the field of road transportation.
1
Integrate traffic elements such as roads, vehicles, and
people/drivers.
2
By sharing this information, it allows the community
of road users to get more information about
problems and greater benefits with a smaller impact
on the environment.
PURPOSE OF INTELLIGENT TRANSPORTATION SYSTEMS
Reduce traffic density
1
Travel time
2
Increase safety
3
Reducing the number of accidents – Greenhouse gas
(GHG) reduction
4
Increasing economic productivity
5
Konsep Design ITS Korea
ITS INTEGRATION
2
1
Subjects
▪ Vehicle User
▪ Weak Person
▪ Bicycle User
▪ Pesetrian
Modes
▪ Bus
▪ Subway
▪ Airplane
▪ Train
Facilities
▪ Bus Stop
▪ Subway Station
▪ Train Station
▪ Airport
▪ Parking Place
▪ Bicycle Parking Place
Reducing air pollution – Empowering consumers
6
12
13
Digital Readiness
in Asia and the Pacifics
Growth Pillar for Success
Asia Pacific Economic Growth
The future economy of Asia
Pacific countries will be supported
by the development of the digital
economy.
Challenge: Indonesia should
develop a smart transportation
system based on environmental
sustainability
Intelligent Transportation System (ITS)
…The Importance of a Digital-based Economy in Asia Pacific...
14
Intelligent Transportation System (ITS)
…The Benefit …
14
IINTEGRATED NETWORKS FOR CUSTOMERS
❑ Mechanisms for collecting quality data abaout the use of the
network Better-quality data to drive better operations,
planning and investment More active network management
SMARTER TRANSPORT CHOICES
❑ Mechanisms that enable the delivery of accurate information
to travellers to promote smarter transport choices
SAFER SPEEDS AND SAFER VEHICLES
❑ Real-time safe speed messaging to drives and / or vehicles
increasingly active vehicle safety features
IMPROVED FREIGHT SUPPLY CHAIN EFFICIENCY
❑ Better and more freight network data collection and use for
enchanced network management and more efficient freight
movements
INNOVATIVE PAYMENT, PRICEING AND COMPLIANCE
APPROACHES
❑ Mechanisms that enable new payment, pricing and
compliance options
The Benefit
1. Energy- Efficient use of energy
2. Environment – reduce environmental impact
3. Techniques to reduce congestion
4. Cost- increase cost efficiency
15
For an Electric Vehicle movement to be successful, it should..
15
Establish network partnerships for
EV technology development and
public awareness
Have a commitment to energy
independence (central and
local government)
Provide incentive policy to build capacity of local industry
(based on best practice)
EV manufacturing
• public and private financing for vehicle and battery research
demonstration and deployment (US and China)
• regional tax and rent subsidies to attract manufacturing plants (US)
• government fleet orders of EVs (Europe and US)
EV owners
• tax credits or reduced sales tax (UK, US, China, Denmark)
• fee-bates (California)
• preferential parking and/or traffic lanes (California)
• exemption from congestion policies (China)
Infrastructure deployment
• subsidies and loans for charging infrastructure equipment
manufacturing and installation (US)
• make public/private land available for charging stations (Europe)
• subsidies and loans for home-charging units for consumers (US)
Development of the electric
vehicle industry from
upstream to downstream
Diversifying electricity supply
(toward renewable electricity)
Electric Vehicle
16
The Purpose of Vehicle Electrification and Key Stakeholders
16
PR No
55/2019
Coordinating
Ministry of
Maritime and
Investment Affairs
Ministry of
Industry
Ministry of
Transportation
Ministry of Energy
and Mineral
Resources
Ministry of
Finance
Ministry of Home
Affairs
Ministry of
Environment and
Forestry
Bappenas
Coordinate EVregulatory agenda
Roadmap of Automotive National Industry Technical
regulations on EVmanufacturing and standards, domestic
content levels
Regulatory agenda in public transportation (BTS), and technical
regulations for EVdeployment (Certificates of Conformity)
Setting policies in the energysector in support of EV deployments.
Key areas: charging infrastructure and electricity sales.
Coordination with PLN
Developing fiscal incentives that target supply (investment in
EVmanufacturing) and demand creation (tax incentives for
consumers)
Regulations that enable local governments to enact fiscal
incentives(Transfer Tax)
Regulate EV waste management
Planning and evaluation of EV-policies
Source:WorldBank,ITDP
,ICCT
,Bappenas
E-mobility
Direct
incentives
Indirect
incentives
Infrastructure
development
Electric
vehicle
mandates
Innovative
business
models
17
Public Electric Vehicle Charging Stations (SPKLU) and
Public Electric Vehicle Battery Exchange Station (SPBKLU)
17
Sumatera
27 11
Jakarta
113 248
Jabar
47 28
Banten
24 29
Jateng,
DIY
28 0
Jatim, Bali,
Nusra
63 42
Sulawesi,
Maluku, Papua
30 12
SPKLU
SPBKLU
Source:KESDM,2022
INDONESIA
332 369
SPKLU and SPBKLU Roadmap of Electric Vehicles and Supporting Infrastructure
Electric Vehicles and Supporting Infrastructure
18
Implementation of the E-Bus Program
18
JAKARTA BALI BANDUNG
• By 2022, 30 trolleybuses have
been operated on 1 route
and there will be an
additional 3 routes
• In 2025, TransJakarta will
only procure electric buses
• Charging strategy: overnight
charging at the depot
• The electric bus trial has been
carried out at the Bali KSPN and
will be operated in stages
• In 2021, 530 EV units were
recorded (3 sedans, 19 minibuses,
2 three-wheeled passenger cars,
506 motorcycles) with 1 EV Fast
Charging Station and 109 Electric
Charging Stations
• The implementation of
electric buses in 1 corridor in
Bandung is currently being
prepared with a buy-the-
service scheme.
• Preparation for a dedicated
line BRT system in
Metropolitan Bandung (23
km) using 357 electric buses
(in preparation stage)
MEDAN
• Preparation of a dedicated
line BRT system in
Metropolitan Medan (21 km)
using 440 electric buses (in
preparation stage)
19
Pilot Project:
BRT e-Bus Roadmap in Metropolitan Bandung and Medan
19
Plan to start with e-buses at one of four depots in each city. Technical assistance for business model
development and transaction consulting embedded into the Project. Issues: expensive e-buses, depot land,
limited contract duration from multi-year contracts.
Source:WorldBank,ITDP
,ICCT
,Bappenas
• According to UNCTAD, Indonesia is the 6th country with
the highest DWT (deadweight tonnage) of ships after
Singapore, China, Greece, Japan, and UK with total DWT
of 29 million tons
• Additioally, the average of Indonesia-flagged ships is 20-
years-old, far above Singapore’s (average of 11-years-old)
• Based on that, decarbonizing Indonesia shipping is
crucial as it has a significant impact on global shipping.
20
INDONESIAN MARITIME CONDITIONS AND WORLD DECARBONIZATION TARGETS
20
ENDORSEMENT OF THE PARIS
AGREEMENT ON CLIMATE CHANGE
GREENHOUSE
GAS REDUCTION 29% FROM
BUSINESS AS USUAL YEARS 2030
ENERGY
11%
(SUCH AS THROUGH INCREASING
RENEWABLE ENERGY PORTION,
SHIFTING, EFFICIENCY)
RPJMN 2020 - 2024
DEVELOPMENT GOALS
ECONOMIC GROWTH
5,7-6,0%
POVERTY
GINI RATIO
HDI
UNEMPLOYMENT
29.332
-
20.000
40.000
60.000
80.000
100.000
120.000
140.000
Singapore China Greece Japan United
Kingdom
Indonesia Denmark India South
Korea
Saudi
Arabia
USA Rusia Italy France Germany
Total DWT kapal berdasarkan bendera (ribu ton)
INTERNATIONAL MARITIME ORGANIZATION
(IMO) TARGETS TO REDUCING CO2 EMISSION
FROM GLOBAL SHIPMENT OF 40% BY 2030 AND
70% BY 2050.
2022 2030 2050
GLOBAL SHIPPING CO2 EMISSION REDUCTION TARGET
40% 50%
GREENHOUSE GAS
REDUCTION UP TO 29% TARGET
IN 2030 (PARIS AGREEMENT)
27,3%
21
National Maritime Decarbonization Strategy
21
ENERGY TRANSISITION
PORT ELECTRICATION
(USE OF RENEWABLE ELECTRICITY IN MAIN PORT
ACTIVITIES)
SUSTAINABLE DEVELOPMENT
(PAY ATTENTION TO LAND USE CHANGES,
MAINTAINING JUSTICE IN DEVELOPMENT FOR LOCAL
COMMUNITIES)
PROVISION OF RENEWABLE ENERGY
(PROVIDE RENEWABLE ELECTRICITY AND SCALABLE ZERO
EMISSION FUEL (SZEF) FOR BUNKERING AND PORT
ACTIVITIES)
GREEN PORT IMPLEMENTATION
National maritime decarbonization efforts must also
involve the port sector which has an important role in
logistics and shipping activities. This effort can be
achieved through several strategies as described
STRATEGY TO IMPLEMENT GREEN PORT
Energy transition from fossil fuels to renewable energy
with national cruises to achieve environmentally friendly
cruises. The energy transition can be carried out in stages
from the use of biofuels to the use of hydrogen and
ammonia without CO2 emissions