AIM

Accelerate the transition toward a zero-emission trucks ecosystem that supports Indonesia’s net-zero emission target.  

WHERE

Indonesia

WHY

Indonesia's path to achieving Net Zero Emission (NZE) by 2060 is critically dependent on decarbonizing its transportation sector, which currently accounts for a substantial 23% of national energy GHG emissions. Within this high-stakes arena, Heavy-Duty Vehicles (HDVs) stand out as it’s singularly contributed nearly one-third (31.7%) of the transportation sector's total greenhouse gases.

Beyond the climate crisis, these diesel trucks are vectors for a severe domestic public health emergency, emitting high concentrations of PM2.5 that degrade urban air quality, trigger respiratory and cardiovascular illnesses, and impose heavy economic burdens through rising healthcare costs and lost productivity.

The problem is also compounded by a national energy paradox: Indonesia, despite its resource wealth, remains reliant on imports with substantial annual oil, coal, and LPG imports - Equivalent to 401 million Barrels of Oil Annually (KESDM, 2024).

Accelerating the transition to Zero Emission HDVs is therefore not merely a climate mitigation strategy, but also a vital intervention with many benefits that simultaneously cuts air pollution, improves public health, and aligns with the national priority of energy self-sufficiency by reducing dependence on imported oil, thereby strengthening the trade balance and reducing hefty government spending on fuel subsidies.  

By tackling the complex market confidence, risk mitigation, and ownership models necessary to drive the private-sector-led transition, IFDA aims to be the game-changer for Indonesia’s climate, health, and energy security. 

HOW

Led by the World Resources Institute (WRI) Indonesia, with support from the Coordinating Ministry for Infrastructure and Regional Development, IFDA aims to provide assistance for companies and institutions to decarbonize their logistics operations to meet their clean energy commitments and targets. IFDA is designed to catalyse the transformation toward zero-emission freight through a structured framework encompassing four key pillars and multiple programmatic activities.  

The initiative works by first establishing the first pillar, Inclusive Regulatory Framework, which involves examining both demand-side and supply-side policy recommendations through participatory approaches with various stakeholders.

IFDA’s second pillar aims to Foster Mutual Aspiration & Business Matchmaking by organizing multi-stakeholder dialogues to stimulate collaboration among the government, industry players, suppliers, and financial institutions. This collaboration is practically supported by specific programs, including Bi-Monthly Discussion Forums for knowledge sharing and research dissection, and dedicated Business Matchmaking to connect potential financiers, industries, and OEMs.  

Furthermore, IFDA’s third pillar is to provide a Corporate Assistance Program to accelerate company efforts on decarbonization through streamlined and focused capacity building in zero emission logistics planning. This is reinforced by Use Case Development activities, which cover critical areas like charging infrastructure models, financing feasibility, and developing key operational planning points.

Finally, IFDA’s final pillar aims to Accelerate Project Demonstration & Proof of Concept by mobilizing coordinated action among all actors to showcase best practices. The entire operational framework is guided by the IFDA Advisory Board for strategic direction, supported by Global Benchmarking & Forum for international insights, and disseminated through Newsletter and Policy/Briefing Notes to inform relevant policy decisions. 

DONOR

Climate Imperative