This study examines the extent to which current land transport management policies contribute to CO2 emission reduction. Utilizing qualitative methods, in-depth interviews with 15 key informants including government officials and academics were conducted to gather comprehensive insights. The findings reveal that policies such as the development of mass transportation systems, incentives for electric vehicle adoption, and stringent emission standards are showing early signs of success.
Indonesia’s approach to sustainable transportation aligns with the principles of the Sustainable Transportation Theory, emphasizing environmental sustainability, economic efficiency, and social equity. However, the fragmented design of policies, which often prioritize infrastructure over behavioral change, limits their long-term impact. For instance, while the expansion of public transportation systems is commendable, complementary policies to encourage their use, such as pricing incentives or integrated ticketing systems, are lacking. Weak coordination among government agencies emerged as a critical barrier. Informants consistently noted the absence of a unified transportation and environmental policy framework. This misalignment results in overlapping initiatives and inefficient resource allocation. Additionally, bureaucratic delays and inconsistent law enforcement further weaken policy implementation. For example, the electronic road pricing (ERP) program in major cities has not been accompanied by significant improvements in public transport quality, limiting its effectiveness in reducing private vehicle use. Public resistance to shifting from private vehicles to public transportation remains high. This is driven by perceptions of inconvenience, lack of reliability, and safety concerns. Informants emphasized the importance of educational campaigns and incentives to change public attitudes toward sustainable transportation. The success of such campaigns in other countries suggests their potential to complement infrastructure-focused strategies.
The findings highlight the need for an integrated policy framework that addresses both technical and social dimensions of transportation management. Specific recommendations include: 1) Expanding the geographic reach and capacity of BRT, MRT, and LRT systems, while improving service reliability and safety to attract more users; 2) Establishing stricter monitoring systems and penalties for non-compliance with emission standards to ensure greater adherence; 3) Accelerating the development of EV charging infrastructure and expanding financial incentives to increase accessibility for middle- and lower-income groups; 4) Launching sustained educational campaigns to raise public awareness of the environmental and economic benefits of using public transport and adopting eco-friendly practices.
The findings of this study reveal that while Indonesia’s land transport policies have achieved some progress, their alignment with economic principles and existing policy goals remains a significant challenge. The economic intuition behind these policies is rooted in the trade-offs between economic growth, environmental sustainability, and social equity. For example, investments in mass transportation systems, such as MRT and BRT, are economically justified as they reduce externalities like congestion and pollution, enhance productivity by minimizing travel times, and promote accessibility. However, the limited geographic coverage and service quality hinder these systems from realizing their full economic potential.
Policies promoting electric vehicles (EVs) leverage economic incentives, such as tax breaks and subsidies, to offset the higher upfront costs associated with EV adoption. This aligns with Pigouvian principles of internalizing externalities by reducing reliance on fossil fuels. However, the inadequate development of charging infrastructure and limited incentives for middle- and lower-income households create market distortions, reducing policy effectiveness. Emission standards and periodic testing represent regulatory approaches aimed at addressing market failures associated with negative externalities. These policies are consistent with environmental economic principles but face enforcement challenges due to weak institutional capacity and lack of compliance mechanisms.
The lack of coordination among government agencies has created fragmented policies that often undermine each other. For instance, the expansion of toll roads, while improving connectivity, has simultaneously incentivized private vehicle use, counteracting the benefits of public transportation investments. This misalignment echoes findings in the literature, such as Holz-Rau and Scheiner (2019), who emphasize the need for integrated land-use and transportation planning to mitigate such contradictions. Furthermore, behavioral resistance among the public, such as the preference for private vehicles, highlights the limitations of supply-side interventions. Consistent with the findings of Roy et al., (2021) addressing demand-side factors, such as public perceptions and preferences, is critical for the success of sustainable transportation policies.
Drawing from the literature on behavioral economics, policies should incorporate nudges, such as discounted fares during peak hours or loyalty programs for frequent users, to encourage public transportation use. This approach aligns with findings by de Janvry & Sadoulet (2020) who advocates for demand-driven strategies to complement infrastructure development. To address inter-agency coordination issues, establishing a centralized transportation and environmental policy body could harmonize goals across sectors. Such integration is crucial, as highlighted by (Asgarian et al., 2024) to ensure that policies promoting public transport, EV adoption, and emission reductions reinforce rather than contradict each other. Expanding subsidies to middle- and lower-income groups can enhance equity and accelerate adoption. This approach resonates with the work of Pineo (2022) who stresses the importance of equitable policy design in achieving sustainability goals.
By directly linking policy recommendations to the results, this study provides a robust foundation for policymakers to refine and implement strategies that achieve sustainable transportation goals while addressing Indonesia’s unique challenges. Future research should focus on quantifying the economic and environmental impacts of these policies to further strengthen evidence-based decision-making. This study has several limitations that should be acknowledged. First, the qualitative approach, while providing rich insights, relies heavily on the perspectives of a limited number of informants, which may affect the generalizability of the findings. Second, the scope of the study was confined to policy analysis and behavioral aspects, without incorporating quantitative modeling to measure the direct impact of specific policies on CO2 emissions. Third, the dynamic socio-political context in Indonesia, including changes in leadership and policy priorities, may influence the relevance of the findings over time.
Author: Prof Dr Wasiaturrahma SE MSi
Details of the research can be accessed on: https://scholar.unair.ac.id/en/publications/a-critical-review-of-land-transport-management-in-indonesia-does-/
