Indonesia's transportation sector produced a staggering 202 million tons of carbon dioxide (CO₂) emissions in 2024 − accounting for 27 percent of national energy-related emissions − according to the Indonesia Sustainable Mobility Outlook (ISMO) 2025, a report released by the Institute for Essential Services Reform (IESR).
Speaking at the report's launch in Jakarta on Monday, July 14, 2025, IESR Executive Director Fabby Tumiwa warned that under a business-as-usual scenario, transport emissions could triple by 2060, jeopardizing the country’s net-zero emissions goal.
“If President Prabowo fails to address this, we can say goodbye to the 8 percent economic growth target by 2029 and to the 2045 Golden Indonesia vision,” Fabby said, while emphasizing the link between emission control and economic stability.
The report reveals the severe economic cost of air pollution stemming from transportation, predicting health-related expenses could reach US$43 billion annually by 2030 − equivalent to 2.2 percent of Indonesia’s GDP.
“Air pollution is already impacting public health and reducing labor productivity,” Fabby said.
Policy gaps
While electric vehicles (EVs) are seen as a crucial solution, IESR pointed to several hurdles including high upfront costs, inadequate charging infrastructure, and delayed government subsidies.
“Unfortunately, subsidies for electric motorcycles remain suspended, even though motorcycles are the primary mode of transport for around 160 million Indonesians,” Fabby said.
Strategy framework
To drastically cut greenhouse gas emissions − by up to 76 percent by 2050 − the report recommends adopting the Avoid, Shift, Improve (ASI) strategy. This includes reducing the need for travel, shifting to more sustainable transport modes, and improving technology and energy efficiency.
“Transitioning to sustainable mobility is not an option − it is a necessity,” Fabby said.
Policy reference
The ISMO 2025 report is available for free on IESR’s official website and is expected to serve as a key reference in drafting Indonesia’s Second Nationally Determined Contribution (NDC) under the Paris Agreement.
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