Sustainability of Indonesia's transportation sector energy and resources demand under the low carbon transition strategies

Abstract

– The transportation sector is Indonesia's largest energy demand sector and has rapidly increased over the last decade, consuming more than 2.4 million TJ in 2022. With most of this energy coming from fossil fuels, the government has set policies to reduce the sector's climate impacts. This study examines the impact of these policies on the future energy demand, the resources needed, and the limiting factors to the implementation. Our results show that the policies can decrease energy demand from the transportation sector, but there will be shifts in the primary energy mix. Coal will be more in demand than gasoline in the future even under the 31 % renewables goal. The demand for critical minerals would also be substantial following the increase in renewables. While Indonesia has one of the largest nickel reserves, it would still require other critical minerals that could threaten Indonesia's energy security. Furthermore, the massive land use required to meet the renewables goals could be a limiting factor in achieving the set goals. This finding serves as valuable information for the policymakers when planning energy and resource supply to meet the emission target.