This paper “Roadmap to zero: Vehicle technology pathways for Indonesia” published by The International Council on Clean Transportation (ICCT) evaluates the current status and projected evolution of low- and zero-emission vehicle powertrains in terms of cost, emissions, and infrastructure needs in the vehicle segments that account for most of Indonesia’s road transport emissions. The paper examines each vehicle technology in detail, with particular attention to their ability to align with the Net Zero scenario for decarbonizing Indonesia’s road transport sector and the implications for Indonesia’s economy and infrastructure.
BEVs offer significant emission reductions compared with gasoline vehicles even when charged on today’s electricity grid, amounting to about a 27% reduction for two-wheelers and a 47% reduction for SUVs. As the power grid shifts to renewables, BEVs will offer even greater reductions. Alongside surging global sales, the cost of BEVs has consistently fallen in recent years: as of 2025, many BEV segments have reached TCO parity with ICEVs. However, apart from three-wheelers, upfront prices are higher for BEVs compared with their gasoline equivalents. Upfront price parity is expected for two- and four-wheelers by 2030, but for some medium- and heavy-duty segments, parity is not anticipated until 2040.
FCEVs can also offer very low life-cycle emissions, but only if powered by hydrogen produced through electrolysis using renewable energy, and such hydrogen is expensive and currently unavailable in Indonesia. By contrast, when powered by any other form of hydrogen, FCEVs offer only modest benefits compared with gasoline ICEVs or even higher emissions. Furthermore, hydrogen vehicles have higher upfront costs than BEVs or ICEVs and require fully new fueling infrastructure. This suggests that there are few applications outside of niche heavy-duty contexts where FCEVs appear well-suited to contribute to Indonesia’s net-zero goals.
PHEVs offer incremental emission reductions compared with gasoline vehicles, but compared with conventional hybrids, PHEVs have higher costs and—unless charged exclusively using renewable energy—higher life-cycle emissions as well. PHEVs have higher life-cycle emissions than BEVs under all electricity scenarios.
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