The electrification of commercial vehicles, particularly freight trucks, faces several challenges in Indonesia, including high vehicle prices, limited financing options and inadequate charging infrastructure.

Electric trucks can cost considerably more than diesel-powered alternatives, making the transition difficult for businesses, particularly small-scale operators.

These findings were presented in a study conducted by the Centre for Transportation and Logistics Studies at Gadjah Mada University (Pustral UGM), in collaboration with a consultancy firm.

The study surveyed 50 micro, small and medium-sized enterprises (MSMEs) operating in the freight transport sector. Only 8% of respondents said they would consider switching to electric trucks under a financing scheme requiring a 30% down payment, 12% interest and a land certificate as collateral. This proportion increased to 56% under more favourable terms, comprising a 15% down payment, 0% interest and only the Motor Vehicle Ownership Certificate (BPKB) as collateral.

The findings indicate that financing conditions influence businesses' willingness to adopt electric trucks. However, these figures represent stated willingness under two financing scenarios rather than actual purchasing decisions or adoption rates.

Electric truck prices and financing challenges

Gemilang Tarigan, Chairman of the Indonesian Trucking Association (APTRINDO), said electric trucks can cost two to three times as much as diesel-powered alternatives, making the initial investment difficult for freight operators.

"Fleet rejuvenation should be a path to low-emission logistics, not a new burden for operators," Gemilang said in an official statement on November 4th 2026.

Dr. Ir Arif Wismadi, M.Sc., Head of the UGM Central Research Centre team, said businesses had primarily raised concerns about costs and financing during a series of discussions.

"Electric trucks won't move from flyers to highways until the calculations make sense to operators," Arif said.

To address these concerns, the study proposes three financing models for further evaluation. These include green credit supported by long-term transport contracts; fleet rentals without down payments, with payments based on mileage or usage periods; and battery subscriptions that separate battery costs from the vehicle's purchase price. The latter could reduce the initial investment required for electric trucks while supporting the development of battery-swapping systems.

Charging infrastructure and emissions

The distribution of charging infrastructure is another challenge. According to the study by Pustral UGM and the consultancy firm, 36% of public electric vehicle charging stations (SPKLU) across Java and Bali are located in Jakarta's five administrative cities. However, these areas account for only around 4.8% of total modelled truck emissions, indicating a mismatch between charging infrastructure locations and freight transport requirements.

Trucks also have different operating requirements from passenger cars, particularly in terms of mileage, battery capacity and charging time. Arif said infrastructure development should be planned along the Java-Bali logistics corridor rather than concentrated in areas primarily serving electric passenger vehicles.

"While the construction of dedicated truck charging stations (SPKLU) has yet to begin, planning must be more systematic so that they are distributed along the Java-Bali corridor, rather than concentrated in the western region of Java as is the case for electric passenger vehicles," he said.

The study also highlighted emissions generated by road-based freight transport. Modelling based on the GLEC Framework estimates that emissions along the Java-Bali corridor will reach 19.72 million tons of CO2 by 2026. Without intervention, this figure could increase by 51% to 29.80 million tons by 2035.

West Java accounts for 31% of modelled emissions, followed by Central Java at 26% and East Java at 22%. Medium-sized two-axle and three-axle trucks together contribute approximately 59% of the total.

A senior executive at a consultancy firm said that identifying regions with concentrated emissions could help the government determine priority areas for intervention.

"The problem turned out to be narrower and more manageable, so our job is to start with those hotspots," the executive said.

As an initial step, the study recommends pilot projects for electric freight trucks along one or two priority corridors or in selected cities. These projects should include charging infrastructure and financing schemes suited to operators' financial capabilities.

Fixed-route and depot-based transport operations have been identified as potential starting points for electrification because their more predictable operating patterns could reduce the financial burden of switching to electric trucks, particularly for small-scale operators.