What is Indonesia's pathway to limit global warming to 1.5°C?

Transport

Decarbonising the transport sector

Transport contributed 15% of Indonesia’s emissions in 2022, driven mainly by oil’s 87% share in the energy mix while biofuel made up the remaining 13%.1 Transport accounted for nearly three quarters of Indonesia’s total final oil products consumption.2 Electric vehicle (EV) adoption remains low but is beginning to take off, with EV sales tripling in 2024 compared to 2023.3

Indonesia's energy mix in the transport sector

petajoule per year

Scaling

Fuel shares refer only to energy demand of the sector. Deployment of synthetic fuels is not represented in these pathways.

In the Deep Electrification pathway, transport emissions peak at just under 200 MtCO₂e around 2025 – higher than in other pathways – before declining. Electricity’s share of transport energy demand rises from under 1% in 2022 to 17% by 2030 and nearly three-quarters by 2050, while oil falls to just over 20% and biofuels around 4%. This pathway reduces biofuel-related deforestation risks, though it entails a higher emissions peak.

Transport electrification can be realised by building on existing fiscal incentives (e.g. VAT discounts and luxury tax relief), scaling up charging infrastructure, expanding low-carbon public transport, and easing local content rules to accelerate electrification.4 Stimulating domestic demand for EVs can boost Indonesia’s EV manufacturing industry, allowing Indonesia to leverage its abundant nickel reserves to support its manufacturing sector.

Indonesia's transport sector direct CO₂ emissions (from energy demand)

MtCO₂/yr

Direct CO₂ emissions only are considered (see power sector for electricity related emissions, hydrogen and heat emissions are not considered here).

1.5°C compatible transport sector benchmarks

Direct CO₂ emissions and shares of electricity, biofuels and hydrogen in the transport final energy demand from illustrative 1.5°C pathways for Indonesia

Indicator
2022
2030
2035
2040
2050
Transport sector decarbonised by
Direct CO₂ emissions
MtCO₂/yr
147
150 to 194
142 to 176
104 to 133
8 to 58
2050 to 2066
Relative to reference year in %
2 to 32%
-3 to 20%
-29 to -10%
-95 to -61%
Indicator
2022
2030
2035
2040
2050
Share of electricity
%
0
2 to 16
4 to 29
8 to 50
25 to 73
Share of biofuels
%
13
1 to 3
2 to 4
2 to 5
4 to 54
Share of hydrogen
%
0
0 to 1
0 to 1
0 to 2
1 to 6

All values are rounded. Direct CO₂ emissions only are considered (see power sector analysis, hydrogen and heat emissions are not considered here). Year of full decarbonisation is based on carbon intenstiy threshold of 5gCO₂/MJ.

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