Rachmat Kaimuddin, CMEA’s Deputy for Basic Infrastructure Coordination, emphasized that there are two ways to reduce emissions in the transportation sector. First, by reducing the number of private vehicles and transitioning them to electric vehicles, particularly two-wheelers, and second, by electrifying public transport to improve national energy efficiency. He added that the potential cost savings from converting buses from diesel to electric could reach IDR 900 million per bus per year, including savings from fuel subsidies that are currently financed by the state budget.

These savings create an opportunity for the government to reallocate funds to subsidize electric public transport, including subsidies for the investment costs of the electric bus ecosystem. This would not only have a positive fiscal impact but also provide broader benefits such as economic efficiency, improved transport quality, reduced traffic congestion, and decreased noise and air pollution.

However, PT  Sarana Multi Infrastruktur (SMI), as the Special Purpose Vehicle (SPV) of the Ministry of Finance, stated that low regional fiscal capacity in the transportation sector is one of the main challenges in electrifying public buses in Indonesia. This finding is also supported by WRI Indonesia’s research on developing an electric bus ecosystem. Multilateral Development Banks (MDBs), particularly the World Bank, also pointed out that the subsidy burden on transport authorities, high upfront investment requirements, limited access to financing (including the availability of financial products in the market), and challenges in securing low-interest loans are key barriers to transport electrification.

Samsi Gunarta, Head of the Bali Provincial Transportation Agency, highlighted three main stakeholders needed to support public transport electrification programs and projects—including the BLEZI program and the eBRT Sarbagita project, Kuta Circulator, and the Ulapan Mobility Plan—which collectively form an integrated and low-emission transport ecosystem in Bali. He stated that electrifying the public bus requires active involvement from the government, participation from the private sector players, including operators and financial institutions, and the consumers as end-users.

The discussion acknowledged that the success of electric bus adoption heavily depends on the commitment of both central and regional governments, especially through regulation, subsidies, institutional development, and cross-regional integration. The experience of PT Transportasi Jakarta (Trans Jakarta), a regional-owned transport company, shows the importance of local regulations such as governor regulations, decrees, and instructions, along with technical, financial, and institutional support to mitigate risks and ensure the sustainable operation of electric buses.

Leasing business models implemented by electric vehicle leasing and manufacturing companies, such as fleet-as-a-service, can help bus operators adopt electric buses without large upfront investments while also demonstrating operational reliability through free trial programs. On the other hand, support from financial institutions in the form of concessional financing, grants for feasibility studies, and technical assistance is also needed. 

Efforts must also be made to design innovative and sustainable financing schemes, one of which is monetizing carbon credits. These credits could be used as part of a blended finance strategy to generate additional revenue and attract private investment.  Carbon credits are a practical option because the amount of CO₂ emissions avoided can be clearly calculated. The calculation is based on how much energy is used and how many people shift from one mode of transport to another (mode-switching). . This approach has been successfully applied in Thailand. 

As an example, a development bank provides a concessional loan, while revenues from carbon credit sales are used to partially repay the loan or enhance the project's internal rate of return (IRR), thereby improving its overall bankability.

The forum concluded with a shared commitment to continued collaboration. Held at the Prime Plaza Sanur Hotel, the discussion garnered nearly 50 participants in total, including representatives from both national and subnational governments, government-affiliated financial institutions, public and private financial institutions, development partners, bus operators, and transport management partners.

These discussions align with the Just Energy Transition Partnership (JETP)’s goal of mobilizing finance for its Investment Focus Areas (IFAs), particularly Energy Efficiency and Electrification (E3). E3 represents the need to implement energy efficiency as the “first fuel” and promote the electrification of the transportation sector.