Guidelines for electric bus procurement in Jakarta
Electric public transit buses are one of the most direct pathways for reducing a city’s greenhouse gas (GHG) emissions and improving air quality. Jakarta, the capital of Indonesia, has made several commitments to accelerate the transition to electric vehicles, and has set a target to have 10,047 electric buses in operation by 2030, and to deploy sufficient charging infrastructure. At the national level, the Ministry of Transportation, the Ministry of Energy, and the national electric utility company have adopted supportive actions to accelerate vehicle electrification efforts.
However, authorities’ steps to electrify the vehicle fleet have met with limited success to date, especially in the transit bus segment. The electrification of public transit fleets poses several challenges including high capital costs, the need to acquire or upgrade depots that host electric charging infrastructure, and the knowledge barrier, as this is a new technology for traditional bus operators. In addition, a procurement business model is needed that can accommodate the higher capital costs of electric buses by leveraging the lower operational costs to yield an overall financial picture that is as good as or better than the conventional business model.
This working paper provides e-bus procurement and contracting guidelines that support the adoption of e-buses in Jakarta’s public transit system and other Indonesian cities based on the lessons learned from successful international cases that have advanced from e-bus pilot projects to scaled-up programs. While this paper is written primarily with Jakarta in mind, its key messages are also valuable for other municipal transit authorities and operators seeking to move from electric bus pilots to fully developed fleets.