Indonesia’s state firms to use only EVs by 2025

Indonesia is setting a three-year deadline for all state-owned companies to use only electric vehicles as part of its goal of reaching net zero emissions by 2060.

The government will also push state-run bus operators Perum PPD and DAMRI to fully electrify their fleet, said State-Owned Enterprises Minister Erick Thohir, without giving a timeline, BNN Bloomberg reports.

They have about 3,500 buses combined, according to their latest annual reports.

“They can rent. Not all of them have to be bought,” he said in an interview in Bali on Monday. The companies can also take out loans as long as they remain prudent, he added. “It’s not only about going toward a cleaner energy source, but also ensuring this doesn’t lead to new cost structures.”

Transportation contributes a quarter of Indonesia’s energy-related emissions, second only to the power sector, according to a government study. The country has already kicked off changes in the power sector to reduce emissions, with state oil giant Pertamina and Perusahaan Listrik Negara seeking to build up renewable energy projects and start carbon trading, among other measures.