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National Public Consultation Triple-benefit to Reduce GHG, Improve Air Quality and Rise Economic Benefits

Pullman Hotel Jakarta, 2 – 3 May 2019

12th Floor Sarinah Building, Jalan MH Thamrin # 11 Jakarta Indonesia 10350

Phone: +62-21-3190 6807 Fax: +62-21-315 3401 e-mail: kpbb@kpbb.org, www.kpbb.org

Soot-free Urban Bus Fleet for the Greater Jakarta

Kementerian PPN BAPPENAS

Kementerian Perhubungan Badan Pengelola Transportasi JABODETABEK

Supporting by

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Executive Summary

An intervention to reduce air pollution and green-house gas from transportation is to implement soot-

free urban bus fleets program or promoting clean buses to serve urban mobility with low emissions that

concerns to the local air pollution as well as global greenhouse gas.

Today, Jakarta is successful to implement soot-free buses by using CNG Buses for BRT Trans Jakarta

since 2006, especially procuring number of newest CNG buses with Euro 6 Standard in 2015. For real

emphasizing soot-free buses in the cities in Indonesia, it is timely to implement fuel economy and

adopting lower emission vehicle standard in order to mitigate air pollution, and green-house gas emission

from transportation. The soot-free urban bus fleets action is driven to achieve triple among to improve

air quality, save the climate as well as trigger economic growth. And the next agendas are FGD and

Public Consultation that are addressed to accelerate the implementation of soot-free urban bus fleet in

the Greater Jakarta through promoting e-bus; by emphasizing cooperation among related stakeholder,

identify technological options, and binding commitment to gain participation related stakeholder.

Contact: Nurul, Mega, Fitri Secretariat:

12th Floor Sarinah Building, Jalan MH Thamrin # 11 Jakarta Indonesia 10350 Phone: +62-21-3190 6807 Fax: +62-21-315 3401

e-mail: kpbb@kpbb.org, www.kpbb.org, fb: KPBB, twitter: @infokpbb

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Soot-free Urban Bus Fleet: Triple-benefit to Reduce GHG, Improve Air Quality and Rise Economic Benefits Term of Reference National Public Consultation, 2 – 3 May 2019 Background

Air pollution is a serious threat for people

who living in urban with high density of traffic.

According to WHO (2016, p. 12), on its latest

report states that environmental health risk

generates the worst single impact that is air

pollution exposure. It is categorized as the

world’s silent killer where it represents one

mortality out of total nine mortalities worldwide.

In other words, annually, it is roughly estimated

that 7 million death is brought about by air

pollution (WHO, 2014). Jakarta as the capital

city of Indonesia; is suffered by severe air

pollution. It is affirmed by a study conducted by

the United Nations

Environment Program

(UNEP) et al. in 2012 (cited

in Kusumaningtyas et al.

2018) states that people

living in Jakarta suffer

multiple pains, not only in

terms of the quantity of

inhabitants which is more

than 57.8% of inhabitants in

Jakarta have diseases which

relates to the air pollution

exposure, but also

healthcare expense that

must be paid is 38.5 trillion

rupiah. Nowadays, the air pollution is a single

risk in the world that threats to the sustainability

of environment and health.

Besides air pollution, it has been reported that

people activities such as business, industry,

residencies and land use in global scale dominate

the rising of emissions of greenhouse gases

(United States Environmental Agency (EPA)

2016, p. 1). High level emissions from various

people’s activities, such as transportation

sectors, fuels used by fleets and deforestation

also generate the increasing of greenhouse gas

emissions that impact to the global warming.

Greenhouse gas that is emitted such as carbon

dioxide (CO2), methane (CH4), nitrous

oxide (N2O) and ozone (O3) (United States

Environmental Protection Agency (EPA) 2016,

p. 1 & 5). According to Thomas and López

(2015, p. 1) global warming impacts to the

intensity of natural disaster such as flooding,

storms, droughts and heat waves.

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In Indonesia, the effort to reduce the emission

facing many obstacles. According to Sukarno et

al. (2015, p. 1) road transport in big cities

dominates more than 90% of fossil fuel

demand. Moreover, the trend of motor vehicle

use is increasingly surging, where according to

Sukarno et al. (2015, p. 1 & 3) that the growth

of private motor vehicle nearly 12% per year

while the growth of public transport is only 2%

per year during observation period from 2000-

2013. Specifically, motorcycle shows impressive

ratio which is one motorcycle ownership in

every 4 (four) people domestically. Surely it

generates the energy depletion, and emits more

GHGs while road transportation in Indonesia

shares 173 MtonCO2e (KPBB, 2017).

It is strongly needed to redesign the effort to

hamper the speed of energy depletion as a

strategic step to reduce emission. A study (Fia

Foundation 2009) launches the 50by50

challenges, that mean by 2050 all people in this

planet must reduce fuel consumption to be 50%

per-capita of current energy situation today.

Indonesia adopts it by reforming the vehicle

standard that is able to reduce fuel

consumption, as a part of fuel economy policy

in the transportation sector.

Indonesia will adopt Euro 4/IV vehicle standard

in 2021. According to Bandivadekar (2014, p. 3)

the implementation of Euro 4/IV standard for

new vehicles in Jakarta is a necessary first step to

alleviate air pollution from the fleets. According

to Safrudin (2018) economic benefit that will be

rising due to adopting Euro 4/IV equivalent

standards for new vehicles in Indonesia by 2021

is IDR 1,970 trillion from cost reduction for

health care, production saving and fuel

efficiency from 2015 to 2030. If only Indonesia

adopts Euro 4/IV equivalent standard for its

new vehicles only in Jakarta by 2016, economic

benefit could raise to IDR 3,973 trillion ~ US$

397.3 billion.

By adopting advance technology will also

reinforce the competitive advantage of national

automotive industry. Empirical study by

Bandivadekar (2014, p. 6) clearly shows that

adopting Euro 2/II-equivalent emission

standard for all new vehicles in 2007 for

Indonesia is a long delay compared to other

ASEAN countries. While other neighboring

countries such as Thailand and Malaysia adopted

that in 1997 and 2001, respectively (Clean Air

Asia, 2008). Now those two countries are one

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step ahead to adopt Euro 4/IV equivalent

standards both in 2012. (Bandivadekar 2014, p.

6). In the Indonesia-investment (March 27 2018, p.

1) now Thailand shows fantastic progress where

it remains in the top among all ASEAN

countries that becomes a market leader of car

producer; Indonesia-investment Thailand seized

Indonesia’s position since 2002 (KPBB, 2005).

Taking into consideration of that issue, intensive

dialog was conducted and lead by Ministry of

Environment in September – December 2013

that involved key stakeholders and key decision

makers, such as Ministry of Energy, Ministry of

Industry, Ministry of Transportation, Ministry of

Finance, Ministry Research and Technology,

automotive industry, oil industry, universities,

and NGOs. That dialogue agreed to accelerate

the adoption of Euro 4 Vehicle Standard by

2016. During the dialogue, Pertamina agreed to

supply appropriate fuel quality that is needed by

modifying the refineries in Balongan, and

Balikpapan, moreover Pertamina was committed

to construct a new refinery to fulfill nation-wide

fuel demand. Until in June 2017, President and

Vice President of Republic Indonesia ordered to

accelerate implementation Euro 4 Standard by

2017, then Minister of Environment and

Forestry signed the decree toward the standard

on 10 March 2017.

Another intervention to reduce air pollution and

green-house gas from transportation is to

implement soot-free buses program or

promoting clean buses to serve urban mobility

with low emissions that concerns to the local air

pollution as well as global greenhouse gas. We

have started serial of meetings/discussions that

were conducted in June 29, July 21 2016 in

Jakarta and August 29 2016 in Busan, Korea.

Then in Jakarta on 27 – 28 October 2016 it was

followed up with International Workshop on

Soot-free Urban Bus Fleet which was involved

by 5 Asian megacities.

Jakarta is successful to implement soot-free

buses by using CNG Buses for BRT Trans

Jakarta since 2006, especially procuring number

of newest CNG buses with Euro 6 Standard in

2015. For real emphasizing soot-free buses in

the cities in Indonesia, it is timely to implement

fuel economy and adopting lower emission

vehicle standard in order to mitigate air

pollution, and green-house gas emission from

transportation. Ministry of National

Development Planning, Ministry of

Transportation, Ministry of Industry,

Government of DKI Jakarta, BPTJ, Trans

Jakarta, ICCT and KPBB which is supported by

IKI Germany; are triggered to achieve these by

conducting co-benefit between to improve air

quality as well as greenhouse gas reduction. And

the next activities are FGD and Public

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Consultation that are addressed to accelerate the

implementation of soot-free urban bus fleet in

the Greater Jakarta.

Objectives: 1. To support the joint cooperation among

local governments in the Greater Jakarta

area to identify the strategy and action plan

to reduce air pollution as well as greenhouse

gas.

2. To identify technical and non-technical

activities to reduce local air pollution and

global greenhouse gas that have been

formulated in the policy paper of soot-free

urban bus fleet in the Greater Jakarta area.

3. To binding commitment among related

stakeholder to reduce local air pollution and

global greenhouse gas in the framework of

soot-free urban bus fleet in the Greater

Jakarta area.

Activities: Title of Activity : National Public Consultation on Soot-free Buses: Triple-benefit to Reduce

GHG, Improve Air Quality and Rise Economic Benefits Date and Venue : 2 – 3 May 2019 at Pullman Hotel Jakarta, Jl MH Thamrin 59 Jakarta Participants : 200 people representing related stakeholder Organizers : ICCT and KPBB Supporting : Ministry of Development Planning/BAPPENAS, Ministry of Transport,

BPTJ, Government of DKI Jakarta, Trans Jakarta, Ministry of Environment, Nature Conservation, Building and Nuclear Safety – Germany.

Agenda:

THE DAY 1, Thursday, 2 May 2019

12:00 – 13:00 Registration and refreshments

13:00 - 13:07 Welcome and Introductions, Ahmad Safrudin, KPBB

13:07 – 13:15 Progress toward Global Soot-Free Urban Bus Fleets Project

Zifei Yang, International Council on Clean Transportation

13:15 – 13:25 Speech by Head of The Greater Jakarta Transportation Authority (BPTJ)

Bambang Prihartono 13:25 – 13:35 Speech by German Ambassador for Republic of Indonesia

HE Michael Freiherr von Ungern-Sternberg

13:35 – 14:00 Speech “Jakarta vision on Soot-free Urban Bus Fleet” and Opening

HE H Anies R Baswedan, SE, MPP, PhD, Governor of Province of DKI Jakarta

14:00 – 14:30 Keynote Speakers:

HE Prof Dr Bambang Soemantri Brodjonegoro, Minister of National Development Planning “Triple-benefits of Soot-free Urban Bus Fleet: CO2 Reduction, Air Quality Improvement and Economic Benefit Rising”.

14:30 – 15:00 Press Conference

Coffee/Tea Break

Policy and Technical Options for Soot-Free Urban Buses in Jakarta

15:00 – 17:00 Global View on Soot-free Bus and Heavy Duty Vehicle Emission Standard

Zifei Yang, ICCT (International Council on Clean Transportation)

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Soot-free Urban Bus Fleet at the National Transportation Program

Budi Setiyadi, DG Land Transportation, Ministry of Transportation

Soot-free Buses in the Framework of the Greater Jakarta Transportation Master Plan

Bambang Prihartono, Head of BPTJ (JABODETABEK Public Transportation Management Authority)

Implementation and Challenges Soot-Free Urban Bus Fleet in DKI Jakarta

Agung Wicaksono, President Director PT Trans Jakarta

Q/A and Discussion

17:00 – 19:00 Welcome Party

THE DAY 2, Friday, 3 May 2019

Morning Session - Lesson Learned

09:00 – 09:10 Resume of the Day 1

09:10 – 09:30 Lessons Learned: Trolley Bus in San Francisco

SFMTA, San Francisco Municipal Transportation Agency (video teleconference)

Industry Readiness on Soot-Free Bus Engine Technology

09:30 – 09:40 Scania

Harijadi Mawardi, General Manager, PT United Tractors TBK

09:40 – 09:50 BYD/Bakri Auto-part

Harry Iskandar, GM Electric Vehicle, BYD Indonesia/Bakri Group

09:50 – 10:00 Hino

Kristijanto, Director, PT Hino Motor Manufacturing Indonesia

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10:00 – 10:10 Mercedes

Marcus Villinger, PT Daimler Commercial Vehicle Indonesia

10:10 – 10:20 Mobil Anak Bangsa

B Prabowo Kertoleksono, GM Business Development, PT Mobil Anak Bangsa

10:20 – 11:00 Q/A and Discussion

11:00 Coffee/Tea and Snack to be served in the meeting room

Energy Options for Soot-Free Urban Bus Fleets

11:00 – 11:15 CNG Supply for Bus Fleets in Jakarta

Achmad Herry Syarifuddin, Operating Director, PT PERTAMINA GAS

11:15– 11:30 Planning and Challenges to Supply Ultra Low Sulfur Diesel Fuel Supply

Syafii Triyono, Vice President Project Planning and Development, Pertamina

11:30 – 13:15 Friday Praying, and Refreshment

13:15 – 13:30 Charging Network of Battery Electrified Bus for Soot-free Bus Fleets in PRC

TBD, PRC (video teleconference)

13:30 – 13:45 Readiness of Electricity Supply for Electrified Bus Fleets in the Greater Jakarta

Muhammad Ikhsan Asaad, PT PLN, State Owned Electricity Company

13:45 – 14:15 Q/A and Discussion

14:15 – 15:15 Working Group Discussion: Next Steps for Soot-free Bus in the Greater Jakarta

Lead by Daud Joseph – Trans Jakarta

Working groups will be organized to discuss toward technical, and energy options, formulation policy and regulation, and green procurement to facilitate the acceleration of implementation soot-free urban bus fleets in the Greater Jakarta. The working group would be divided in 4 groups as follow:

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Working Group 1: Technical Options

Working Group 2: Energy Options

Working Group 3: Policy and Regulation

Working Group 4: Green Procurement

15:15 Coffee/Tea and Snack to be served in the meeting room

15:15 - 16:00 Plenary Session

Report from Working Groups

16:00 – 17:00 Wrap-up: Concluded and Recommendation

Conclusion

Recommendation

The Next Steps

Closing by Ikhwan Hakim Director of Transportation – BAPPENAS

END of EVENT

References

1. Bandivadekar, A, 2014, Opportunities to Reduce Vehicle Emissions in Jakarta, viewed March 24, 2019,

https://www.theicct.org/sites/default/files/publications/ICCT_Jakarta-briefing_20141210.pdf

2. Fia Foundation 2009, Making Cars 50% More Fuel Efficient by 2050 Worldwide, viewed March 22 2019,

https://www.fiafoundation.org/media/44140/50by50-report-2009.pdf

3. Indonesia-investment 2018, ‘Automotive Industry ASEAN: Indonesia Lags Behind Thailand’, March 27 2018, p.1,

viewed March 24, 2019 https://www.indonesia-investments.com/news/todays-headlines/automotive-industry-asean-

indonesia-lags-behind-thailand/item8689

4. Kusumaningtyas S, Aldrian E, Wati T, Atmoko D, Sunaryo 2018, ‘The Recent State of Ambient Air Quality in Jakarta’,

Aerosol and Air Quality Research, vol. 18, no. 2343–2354, viewed March 22 2019,

http://www.aaqr.org/files/article/6685/18_AAQR-17-10-MAPS-0391_2343-2354.pdf

5. Safrudin, A 2018, Status and Roadmap Vehicle and Emission Standard in Indonesia, viewed March 24, 2019,

http://cleanairasia.org/wp-content/uploads/2018/05/Ahmad-Safrudin-Vehicle-Emission-Standard-in-Indonesia.pdf

6. Safrudin, A; et al, Cost Benefit Analysis on Fuel Quality and Fuel Economy Initiative in Indonesia, UNEP, 2012

7. Safrudin, A 2018, Low Carbon Emission Vehicle Standard in Indonesia, Better Air Quality, Kuching, 2018.

8. Sukarno I, Matsumoto H, Susanti L 2016, ‘Transportation energy consumption and emissions - a view from city of

Indonesia’, Future Cities and Environment, no. 2-6, viewed March 24, 2019

https://pdfs.semanticscholar.org/4bf6/95a9cc378588cbc4fba8d538b47c21798851.pdf

9. The United States Environmental Protection Agency (EPA) 2016, Global Greenhouse Gas Emissions, viewed March 22

2019, https://www.epa.gov/sites/production/files/2016-08/documents/print_global-ghg-emissions-2016.pdf

10. Thomas and López 2014, ‘Global Increase in Climate-Related Disasters’, ADB Economics Working Paper Series, vol.

466, viewed March 22 2019, https://www.adb.org/sites/default/files/publication/176899/ewp-466.pdf

11. World Health Organization (WHO) 2014, ‘7 million deaths linked to air pollution annually’, Department of Public Health,

Environmental and Social Determinants of Health, vol. 63, viewed March 22 2019, https://www.who.int/phe/eNews_63.pdf

12. World Health Organization (WHO) 2016, Ambient Air Pollution: A global assessment of exposure and burden of

disease, viewed March 22, https://apps.who.int/iris/bitstream/handle/10665/250141/9789241511353-

eng.pdf?sequence=1&isAllowed=y

Photos: Courtesy of Trans Jakarta, Liputan6.com, Antara, Tribun News.

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