WRI Says Freight Electrification Key to Energy Self-Sufficiency

WRI Indonesia has warned that the target of energy self-sufficiency risks becoming unattainable if the government focuses only on increasing oil production without controlling diesel consumption. The institute considers the electrification of freight transport to be one of the strategies to reduce the need for fuel imports while strengthening national energy security. The warning was delivered at the Indonesia Zero Emission Heavy-Duty Vehicle (IZEHDV) Summit 2026 in Jakarta. WRI Indonesia noted that national diesel consumption has increased by 24.5 percent over the past five years, while domestic refinery capacity can only meet approximately 51.6 percent of demand. Based on WRI Indonesia’s analysis, the country could potentially resume importing diesel starting in 2027 if no efforts are made to control demand. Without technological changes in the transport sector, national diesel demand is projected to reach 87.5 million kilolitres by 2040, whereas domestic production capacity is estimated at only around 26.5 million kilolitres. WRI Indonesia Country Director Nirarta Samadhi stated that increasing energy production will not be sufficient to achieve self-sufficiency if fuel consumption continues to rise. “Our modelling shows that without significant changes in transport technology, Indonesia’s diesel demand could reach 87.5 million kilolitres by 2040. Meanwhile, domestic production capacity is estimated at only around 26.5 million kilolitres. This means that increasing energy supply alone will not be enough. We must also begin managing energy demand, and transforming freight transport is one of the most important strategies to realise Indonesia’s energy self-sufficiency,” he said on Thursday. To drive the transformation of the logistics sector, WRI Indonesia developed the Indonesia Freight Decarbonization Accelerator (IFDA), which was launched in 2025. The programme has involved 42 companies from the logistics ecosystem in studies, discussion forums, and assistance in implementing zero-emission heavy-duty vehicles through a Corporate Assistance Programme. WRI Indonesia has also developed the Truck Route Assessment & Charging Evaluation (TRACE), a platform designed to help the government and industry players evaluate route readiness, charging requirements, and infrastructure development priorities for electric freight vehicles before investments are made.