Investor Presentaiton

Transport Emission Indonesia Electric Vehicle Outlook 2023 Decarbonization of the transport sector is crucial to limit temperature rise below 1.5°C • Indonesia's energy sector emitted almost 600 MtCO2-eq in 2021, primarily from energy industries (power generation), which accounts for 50% of emissions. Transportation and manufacturing are the second and third largest sources of emissions, accounting for 23% and 18% of emissions, respectively. In the transport sector, road transportation is the largest contributor with over 90% share. • In the Long Term Strategy for Low Carbon and Climate Resilience (LTS-LCCR), the Ministry of Environment and Forestry (MOEF) projected that under the current policy scenario (CPOS), GHG emissions from the transport sector will reach 145 MtCO2-eq in 2050, an increase of 23% compared to 2020. Meanwhile, under the LCCP scenario aligned with the government's target for net-zero by 2060, emissions from transportation is projected to decline to 100 MtCO2-eq in 2050, a mere 31% reduction from the CPOS scenario. The emission reduction under LCCP is expected to come from demand reduction and high utilization of biofuel and electricity at 46% and 30% of 2050 transportation energy mix, respectively. ⚫IESR (2021) suggests that emissions from the energy sector, including transportation, need to reach near zero by 2050 to keep the global temperature rise below 1.5°C. To achieve that, electrification will be the key strategy, supported by better urban planning and modal shifting to reduce energy demand, and complemented by the utilization of other sustainable fuels. The study projected that around 50% of the total energy demand for transportation will come from electricity. GHG emissions from energy sector by sources in 2021 18.08% 23.14% 50.17% Energy Industries Commercial Road Transport Sources: MoEF, 2022 Million tonnes CO₂-eq 150 100 50 4.54% 3.77% 21.94% 1.19% Manufacturing Resedential Civil Aviation Transport Transport Others Water-Borne Navigation Transport sector GHG emission projections on various scenario 131.3 117.8 121.9 117.8 112.8 144.9 107.4 100.1 2020 2030 2040 2050 MoEF's CPOS MoEF's LCCP Sources: MoEF, 2021 ○ 10 10

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