Indonesia's Electrification Strategy: Prioritise Commercial Vehicles!

Efforts to electrify vehicles in Indonesia are deemed insufficient if focused solely on private cars and motorcycles. Commercial vehicles such as buses and trucks are considered to play a more strategic role in driving decarbonisation in the transportation sector. This was stated by the President Director & CEO of PT Bakrie & Brothers Tbk, Anindya Novyan Bakrie, during the inauguration of VKTR’s electric commercial vehicle assembly plant together with President Prabowo Subianto in Magelang, Central Java, on Thursday (9/4/2026). He explained that public attention has so far been more directed towards the electrification of cars and motorcycles due to their very large numbers, reaching 130 million to 160 million units. However, in terms of usage and impact, commercial vehicles have a much higher operational intensity. “A bus can carry many people in one vehicle. So the impact is broader. Especially if we talk about public transportation,” Anindya said in his official statement, quoted from the SekretariatPresiden YouTube channel. As an example, he highlighted the use of electric buses in the Transjakarta system. Currently, around 150 electric bus units are operating and in about two years have served up to 10 million passengers. This is seen as proof that electrifying commercial vehicles can have a significant impact in a relatively short time. In addition, electrifying buses and trucks is also considered capable of providing a chain effect on national energy efficiency. Anindya stated that if all those commercial vehicles switch to electric, the potential savings in fuel oil (BBM) subsidies could reach around US$5 billion or equivalent to Rp85.32 trillion per year. An ecosystem-based approach is needed involving various sectors, from manufacturing, bodywork, to other supporting components. “This is not just about vehicles, but the industrial ecosystem. We must grow together with partners, including bodywork and component suppliers in various regions,” Anindya said.