Herman, Jakarta – The National Development Planning Agency, or Bappenas, is proposing the phaseout of vehicles running on gasoline and diesel to pave way for the government's net zero emission target.
The sales of fossil fuel-powered vehicles must be discontinued completely by 2040, according to the proposal being drafted by Bappenas.
"Under the net zero emission scenario, the share of electric vehicles in both public transportation and private ownership must reach 90 percent by 2055, and the rest should comprise hydrogen cars," Arifin Rudiyanto, the agency's deputy on maritime affairs and natural resources, said in a seminar in Jakarta on Friday.
The agency estimated that fossil fuel consumption in the transportation sector could reach up to 96 million kiloliters by 2030 from the current 77 million kiloliters.
On the other hand, local oil production is still below 47 million kiloliters.
"To meet the domestic demand, we have to import (fuels) that will eventually add pressures on the state budget and trigger deficit in the current account and the trade balance," Arifin said.
Under its nationally determined contribution (NDC) pledge in the Paris Agreement, Indonesia aims to cut its greenhouse gas emissions by 29 percent on its own or 41 percent with international assistance by 2030.
The Indonesian government has also set a goal of achieving net-zero emissions by 2060