A Sustainable Asset Valuation of a Net-Zero Transport Strategy in Indonesia

The report evaluates three primary net-zero transport scenarios for Indonesia: investment in public transport (Scenario 1), 100% private vehicle electrification powered by renewable energy (Scenario 2), and a mixed approach (Scenario 3). Using the SAVi methodology, the analysis finds that Scenario 3 delivers the highest cumulative discounted net benefit of IDR 6,926.03 trillion (USD 450.1 billion) by 2050. While Scenario 2 offers the most attractive benefit-cost ratio (BCR) of 1.97 due to lower infrastructure costs, Scenario 3 provides the greatest overall societal value by combining 'avoid, shift, and improve' strategies. The report emphasizes that achieving net-zero in transport is inextricably linked to the decarbonization of the electricity supply, as sensitivity analyses show that the current energy mix significantly reduces net benefits.

• Scenario 3, which integrates public transport investment, private vehicle electrification, teleworking, and renewable energy, is the most beneficial strategy, yielding a cumulative discounted net benefit of IDR 6,926.03 trillion (USD 450.1 billion) by 2050.
• Scenario 2, focusing on 100% private vehicle electrification powered by 100% renewable energy, provides the highest benefit-cost ratio (BCR) at 1.97, meaning 1.97 IDR is returned for every 1 IDR invested, primarily because it avoids the high costs of public transport infrastructure.
• Scenario 1, which focuses only on electric public transport systems and teleworking, results in the lowest cumulative net benefit among the main scenarios at IDR 1,949.02 trillion (USD 126.7 billion).
• The decarbonization of the energy sector is essential for the success of transport strategies; a sensitivity analysis (Scenario 2b) shows that 100% vehicle electrification using the current energy mix (17.6% renewable) reduces net benefits to IDR 2,218.94 trillion compared to IDR 5,905.54 trillion under a 100% renewable energy mix.
• Societal benefits from net-zero transport are heavily driven by intangible factors; for Scenarios 2 and 3, over 35% of benefits come from avoided accidents, reduced air and noise pollution, and lower CO2 emissions.
• The highest BCR from a household and society perspective is found in Scenario 3 (4.93) and the sensitivity Scenario 2a (5.34), indicating that the majority of benefits accrue to the population rather than the government.
• Avoided costs of traffic accidents are a major economic driver for public transport scenarios, contributing IDR 7,447.16 trillion in avoided costs for Scenarios 1 and 3, while Scenario 2 shows no avoided accident costs as vehicle volume remains unchanged.
• Electrifying 100% of private vehicles is more effective at reducing CO2 emissions and energy costs than investing solely in public transport; Scenario 3 avoids 15,255 million tons of CO2 by 2050, while Scenario 2 avoids 14,466 million tons.

APA

Kapetanakis, M., Niño, N., Casier, L., & Bassi, A. M. (2024). A Sustainable Asset Valuation of a Net-Zero Transport Strategy in Indonesia. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-02/savi-net-zero-transport-indonesia.pdf

Chicago

Kapetanakis, Michail, Nathalia Niño, Liesbeth Casier, and Andrea M. Bassi. A Sustainable Asset Valuation of a Net-Zero Transport Strategy in Indonesia. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-02/savi-net-zero-transport-indonesia.pdf.

Wikipedia

{{cite report |last1=Kapetanakis |first1=Michail |last2=Niño |first2=Nathalia |last3=Casier |first3=Liesbeth |last4=Bassi |first4=Andrea M. |title=A Sustainable Asset Valuation of a Net-Zero Transport Strategy in Indonesia |publisher=International Institute for Sustainable Development |date=January 2024 |url=https://www.iisd.org/system/files/2024-02/savi-net-zero-transport-indonesia.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kapetanakis2024sustainable, author = {Kapetanakis, Michail and Niño, Nathalia and Casier, Liesbeth and Bassi, Andrea M.}, title = {{A Sustainable Asset Valuation of a Net-Zero Transport Strategy in Indonesia}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = jan, url = {https://www.iisd.org/system/files/2024-02/savi-net-zero-transport-indonesia.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }