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Supporting the Success of Indonesia’s Chairmanship in ASEAN 2023, Green Transport Rally Officially Launched

20 August 2023

Jakarta, 22 August 2023 – As a form of support for the success of Indonesia’s chairmanship in ASEAN 2023, the Ministry of Energy and Mineral Resources (ESDM), together with the ASEAN Centre for Energy (ACE), launched the Green Transport Rally (GTR). It’s a convoy of environmentally friendly fuel vehicles from Jakarta and ends in Bali from August 20, 2023, to August 24, 2023. With the theme “Towards Net Zero Emissions,” this rally illustrates the unwavering commitment of ASEAN member states to overcoming sector challenges in transportation to achieve emission reduction targets.

Director General of New, Renewable Energy and Energy Conservation of the Ministry of Energy and Mineral Resources, Yudo Dwinanda Priaadi, said Indonesia is the ASEAN member country with the highest energy consumption, which will continue to increase significantly as its economy and population grow. Indonesia has a strategic role in renewable energy development efforts to support economic development and tackle climate change while achieving resilience goals and energy independence, universalization, and affordability.

“Energy transition efforts in the transportation sector through the use of fuel-friendly vehicles environment will also support the achievement of Indonesia’s Net Zero Emission (NZE) target in the year 2060 or sooner,” Yudo said in his remarks at the ASEAN GTR 2023 Release Procession in Ministry of Energy and Mineral Resources office today (Sunday, 20/8)

Also, present at the procession to release the convoy of environmentally friendly fuel vehicles, Executive Director of ACE, Dr Nuki Agya Utama, said that the ASEAN GTR 2023 encourages awareness of sustainable mobility options, which are essential for ASEAN’s growth and development. The rally is expected to improve energy efficiency and vehicle options that use a variety of energy supplies and technologies.

“By integrating the ASEAN Green Transport Rally into the ASEAN Energy Business Forum, ACE is actively contributing to focusing on sustainable transportation in the ASEAN region and highlighting innovative solutions that can find alternative energy sources for the transportation sector. It is important to ensure energy security, stable energy supply, and lower energy prices in the transportation sector,” Dr Nuki explained.

Following the 7th ASEAN Energy Outlook (AEO7), the transportation sector is one of the largest energy consumption sectors in the region, especially oil products. This raises energy security concerns as ASEAN is a net importer of oil-about 182 mtoe in 2020. At the same time, this will impact emissions, where the transport sector accounted for 20.9% of total emissions in 2020. By 2050 energy demand will triple in the baseline scenario. Energy efficiency efforts, including switching transportation to biofuels and electric vehicles, could reduce imports to 846 mtoe. Therefore, the urgency to switch to diverse and sustainable energy sources is crucial.

The ASEAN GTR is also a series of the ASEAN Energy Business Forum (AEBF), which aims to identify the potential economic and environmental benefits of passenger car technologies using sustainable technologies. There were eight units of cars participating in the convoy activities, consisting of two units of Hyundai Ioniq cars, one unit of Mercedes Eq cars, two units of Wuling Almaz Hybrid cars, one unit of Mitsubishi Pajero Sport, one unit of Toyota Kijang Innova, one unit of Toyota Hilux that uses B40 fuel, and one unit of Suzuki Ertiga Hybrid.

The types and strategic points of vehicles that take part in this rally include:

  • Biodiesel Fueled Vehicles: The ASEAN GTR highlights vehicles that run on biodiesel fuel, contributing significantly to a cleaner transportation landscape. The vehicles in the rally are Toyota Kijang Innova, Toyota Hilux, and Mitsubishi Pajero
  • Electric Vehicles (EVs): EV vehicles lead this shift by being emissions-neutral and driving the transition to sustainable mobility. The vehicles in the rally are the Mercedes EQ and the Hyundai
  • Hybrid Electric Vehicle (HEV): Hybrid Vehicle models optimize fuel efficiency through a harmonious combination of internal combustion engine and electric motor. The vehicles in this rally are Wuling Almaz Hybrid and Suzuki Ertiga

On the same occasion, Acting Director of Partnership BPDP Palm Oil, Kabul Wijayanto, revealed that currently, Indonesia is a country that develops biofuels (BBN) where the blending rate with diesel is the highest in the world through the implementation of a mandatory 35% biodiesel (B35) program. The use of biodiesel from palm oil is also a form of downstream industry that continues to be encouraged by the government to create increased added value in the country while also being very effective in reducing export market dependence for CPO (Crude Palm Oil), as well as reducing the use of fossil fuels.

“BPDPKS fully supports the Green Transport Rally 2023 activity as an excellent social awareness event to the public regarding the use of environmentally friendly biofuels,” he concluded.

In addition to the rally, there will be a supporting event in Surabaya, namely Green Transport Talkshow. This event will be held on 21 August 2023, at Mercure Manyar Hotel, Surabaya. The event will discuss innovative solutions, ideas, and discussions to drive the ASEAN region toward a greener and more sustainable future. The rally will culminate in Nusa Dua, Bali, to coincide with the ASEAN Energy Business Forum (AEBF) 2023. The presence of energy ministers from all countries in the ASEAN region confirms the collective commitment and joint efforts to transition energy towards Net Zero Emissions.

About ASEAN Centre for Energy (ACE)

Established on 1 January 1999, the ASEAN Centre for Energy (ACE) is an intergovernmental organisation within the Association of Southeast Asian Nations’ (ASEAN) structure that represents the 10 ASEAN Member States’ (AMS) interests in the energy sector. ACE supports the implementation of the ASEAN Plan of Action for Energy Cooperation (APAEC), a blueprint for better collaboration towards upgrading energy. The Centre is guided by a Governing Council composed of Senior Officials on Energy from each AMS and a representative from the ASEAN Secretariat as an ex-officio member.

The three key roles of the ACE:

  • As an ASEAN energy think tank to assist the AMS by identifying and surfacing innovative solutions for ASEAN’s energy challenges on policies, legal & regulatory frameworks and technologies.
  • As a catalyst to unify and strengthen ASEAN energy cooperation and integration by implementing relevant capacity building programmes and projects to assist the AMS develop their energy sector.
  • As the ASEAN energy data centre and knowledge hub to provide a knowledge repository for the AMS.

Keeping the region’s improvement, sustainable and harmless to the ecosystem is a fundamental concern of the ASEAN energy sector.

Hosted by the Ministry of Energy and Mineral Resources of Indonesia, ACE’s office is located in Jakarta, Indonesia.

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