The Benefits of a Net-Zero Transport Strategy to Stimulate Sustainable Mobility in Indonesia

The report evaluates three mobility scenarios for Indonesia using the Sustainable Asset Valuation (SAVi) methodology. Scenario 1 focuses on public transport and non-motorized transport; Scenario 2 focuses on private vehicle electrification; and Scenario 3 combines both. While Scenario 2 offers the highest benefit-cost ratio (BCR) due to lower investment costs, Scenario 3 provides the greatest overall societal benefit, with cumulative discounted benefits of USD 450.1 billion by 2050 and a societal BCR of 4.93. The analysis emphasizes that decarbonizing the energy supply is essential for transport decarbonization and that integrating health and safety externalities into cost-benefit analyses reveals the true investment worthiness of sustainable transport.

• An integrated 'avoid, shift, and improve' strategy (Scenario 3) provides the highest cumulative discounted benefits for society, totaling USD 450.1 billion (IDR 6,926.03 trillion) by 2050. This scenario combines investments in 100% electric public transport (MRT and BRT), non-motorized transport (NMT) infrastructure, 100% private vehicle electrification powered by renewable energy, and a 15% reduction in demand via teleworking.
• While Scenario 2 (private vehicle electrification and teleworking) has the most attractive overall benefit-cost ratio (BCR) at 1.97 USD for every USD invested, Scenario 3 delivers the greatest societal value with a BCR of 4.93 from a households/society perspective.
• The most significant economic gains across all scenarios come from avoided costs related to air pollution, traffic accidents, internal combustion engine (ICE) vehicle costs, and CO2 emissions.
• Traditional cost-benefit analyses that only consider tangible economic indicators significantly underestimate the value of transport interventions. For Scenario 3, the BCR is 0.47 when considering only tangible impacts, but rises to 1.52 when intangible impacts (social and environmental externalities) are included.
• Decarbonizing the energy sector is a prerequisite for achieving net-zero transport in Indonesia, as the success of vehicle electrification depends on a high share of renewable energy in electricity generation.

APA

International Institute for Sustainable Development (n.d.). The Benefits of a Net-Zero Transport Strategy to Stimulate Sustainable Mobility in Indonesia. https://www.iisd.org/system/files/2024-03/savi-net-zero-transport-indonesia-summary.pdf

Chicago

International Institute for Sustainable Development. The Benefits of a Net-Zero Transport Strategy to Stimulate Sustainable Mobility in Indonesia. n.d. https://www.iisd.org/system/files/2024-03/savi-net-zero-transport-indonesia-summary.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=The Benefits of a Net-Zero Transport Strategy to Stimulate Sustainable Mobility in Indonesia |url=https://www.iisd.org/system/files/2024-03/savi-net-zero-transport-indonesia-summary.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndbenefits, author = {{International Institute for Sustainable Development}}, title = {{The Benefits of a Net-Zero Transport Strategy to Stimulate Sustainable Mobility in Indonesia}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/2024-03/savi-net-zero-transport-indonesia-summary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }