Towards an Effective Road Transport Fleet Renewal Strategy for Indonesia

Alloysius Joko Purwanto, Ryan Wiratama Bhaskara, Laksmita Dwi Hersaputri, Shafa Nabilla Haya and Pusat Studi Energi Universitas Gadjah Mada Economic Research Institute for ASEAN and East Asia (ERIA)
Additional contact information
Alloysius Joko Purwanto: Economic Research Institute for ASEAN and East Asia (ERIA)
Ryan Wiratama Bhaskara: Economic Research Institute for ASEAN and East Asia (ERIA)
Laksmita Dwi Hersaputri: Economic Research Institute for ASEAN and East Asia (ERIA)
Shafa Nabilla Haya: Economic Research Institute for ASEAN and East Asia (ERIA)

No 2026-RPR-06 in Books from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: The transport sector plays a central role in Indonesia's decarbonisation efforts, particularly road transport, which accounts for around 24% of national emissions. This is driven by rapid growth in vehicle ownership and continued reliance on fossil fuels. A key challenge exacerbating emissions is the large share of old and inefficient vehicles. Indonesia currently lacks a structured fleet renewal and vehicle retirement policy, resulting in the persistent accumulation of outdated, high-emission vehicles within the national fleet. Focusing on private passenger cars, this study employs a population-based model to estimate the costs and benefits of different fleet renewal strategies. It simulates a range of scenarios, including varying combinations of standards, subsidies, regulations, taxes, and scrappage programmes. The study concludes with a set of regulatory improvements and policy recommendations. To support these, it includes a comprehensive regulatory mapping, international benchmarking, and gap analysis of Indonesia's existing legal framework and policy initiatives related to cleaner vehicle adoption and the retirement of high-emission legacy vehicles.

Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.eria.org/uploads/Towards-an-Effective- ... y-for-Indonesia.pdf/

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:era:eriabk:2026-rpr-06

Access Statistics for this book

More books in Books from Economic Research Institute for ASEAN and East Asia (ERIA) Contact information at EDIRC.
Bibliographic data for series maintained by Ranti Amelia ( this e-mail address is bad, please contact ).