Jakarta, March 1, 2025 β The transportation sector is one of the biggest contributors to carbon emissions in Indonesia. Citing an IESR study, the sector is among the top three highest CO2 emitters in the country. Of the total transportation emissions, around 90 percent comes from land transportation, with passenger cars as the biggest contributor, contributing around 78 percent of the total emissions in this sector or around 106 million tons of CO2e per year. This was revealed by Faris Adnan Padhilah, Research Coordinator for Energy Management Demand, IESR in the RECharge Empowering Youth in Renewable Energy and Electric Vehicles Webinar on Saturday (1/3/2025).
βEvery year around 6 million vehicles are sold in Indonesia, with motorcycles dominating more than 90 percent of the market share based on International Energy Agency (IEA) data in 2024. As one of the largest automotive manufacturers in Southeast Asia, Indonesia has an important role to play in the transition to electric vehicles,β Faris emphasized.
However, Faris continued, there are several challenges in the implementation of electric vehicles, even though electric vehicles can be one of the solutions for decarbonizing the transportation sector. These challenges include aspects of emissions generated from electricity production and manufacturing of electric vehicles themselves.
βThe main source of electric vehicle emissions comes from the production of electricity as fuel and the manufacturing process. Electric battery production also adds to carbon emissions, although in different portions, around 6 percent for electric cars and 20 percent for electric motorcycles. Currently, the battery supply chain ecosystem in Indonesia includes 357 companies in the upstream sector, 6 companies in the middle sector, and 42 companies in the downstream sector,β Faris said.
In addition, according to Faris, there is another major challenge related to the environmental impact of used batteries. If not managed properly, electric vehicle batteries have the potential to become hazardous e-waste. It is estimated that by 2030, Indonesia will have around 12 GWh of potential used batteries that need to be properly managed based on an IESR study titled Generating the Future β An Assessment of Energy Storage Solutions and Their Applications for Indonesia. Cases of uncontrolled e-waste have occurred before, such as in Riau in 2004 and Bogor in 2015, due to lead-acid battery waste polluting the environment.
βUnfortunately, until now Indonesia does not have a clear regulatory framework to deal with electric vehicle battery waste. Without strict regulations, the potential for environmental pollution due to e-waste can be a serious threat. Therefore, in addition to accelerating the adoption of electric vehicles as a decarbonization solution, Indonesia also needs to pay attention to battery waste management so that it does not become a new environmental problem in the future,β said Faris.
To support the transition to low-emission transportation, Faris mentioned, various steps must be taken, including increasing clean energy in power plants, optimizing a sustainable battery supply chain, and stricter regulations regarding e-waste management. With the right strategy, electric vehicles can be an effective solution in reducing carbon emissions from the transportation sector without creating new environmental impacts.
