Jakarta (ANTARA) - The electrification of the entire TransJakarta bus fleet has been found to be financially feasible and has been projected to generate Rp4.2 trillion (US$281 million) in economic value by 2030.

"The large-scale electrification of Transjakarta's fleet is considered financially and economically feasible and needs to be implemented immediately to maximize its benefits," Institute for Transportation and Development Policy (ITDP) Indonesia’s interim director, Gonggomtua Sitanggang, said here on Wednesday.

The projected Rp4.2 trillion in economic value after the full-scale electrification of the TransJakarta fleet is based on a study conducted by ITDP Indonesia, he added.

ITDP also partnered with the United Kingdom government's PACT (Partnering for Accelerated Climate Transitions) for the study.

The entire fleet electrification is targeted to be achieved by 2023 and is expected to reduce almost 60 percent of greenhouse gas (GHG) emissions.

According to Sitanggang, the study has shown that to ensure the feasibility of fully transitioning to electric buses, TransJakarta needs to explore new financing schemes, such as separating asset ownership and fleet operations.

ITDP has also advised TransJakarta to implement leasing schemes with operators to distribute operational risks and financing expenses.

It has also recommended that the city bus rapid transit service provider cooperate with the Ministry of Finance to obtain the lowest cost of funds for the procurement of electric buses.

A Limited Participation Mutual Fund (RDPT) can also be an alternative investment instrument for financing the e-bus program.

On the same occasion, Jakarta's provincial assistant for economy and finance, Sri Haryati, said that the provincial government is committed to supporting sustainable transportation and mobility to achieve decarbonization by 2050.

She further said the ITDP study helped the administration in making efforts toward the electrification of public transportation.

"The lessons from ITDP Indonesia have been very helpful for Jakarta (in the effort) toward the electrification of public transportation, as part of the commitment to structuring Jakarta as a sustainable global city," she added.

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Translator: Sinta A, Kenzu
Editor: Azis Kurmala
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