Indonesia works to spur use of electric buses

By VNA March 28, 2024 | 03:00 pm PT

Passengers wait at a bus station in Jakarta, Indonesia, May 2023. Photo by Unsplash/Hilmi Alwan Redjasha

The Indonesian Ministry of Finance recently announced tax incentives of 5% and 10% for electric buses with a localization rate of 20% and at least 40%, respectively, in a bid to spur the use of public transport using electric motors in the country.

Developing electric buses is part of the solutions to realize Indonesia's commitment related to smart and environmentally friendly cities.

In Jakarta, spurring electric vehicle (EV) production and sales also aims to contribute to improving air quality and reducing pollution.

However, the development of electric bus technology in the Southeast Asian nation is not as fast as other EVs such as cars and motorbikes.

Beni Sukadis, Coordinator of the Indonesian Institute for Strategic and Defense Studies, said Indonesia aims to promote clean energy to fulfill its commitment to neutralize emissions before 2060.

Therefore, developing electric buses is an inevitable trend that Jakarta pursues, he said, adding that it is making efforts to build a green public transport system, towards a smart and environmentally friendly city in the future.

Municipally-owned land transportation company Transportasi Jakarta (TransJakarta) is planning to gradually increase the number of electric buses to about 500 large and medium-sized vehicles in 2024 and 2025. The plan aims to reduce carbon emissions and improve air quality in Jakarta, helping to increase the ratio of public transport to 60% and electrifying 100% of TransJakarta's buses before 2030.