Jakarta's Transition to Euro 4 Fuel: Health and Economic Benefits

Indonesia's move towards Euro 4 fuel standards presents a critical opportunity to improve air quality and reduce healthcare costs. According to the Institute for Essential Services Reform (IESR), adopting Euro 4 standards in Jakarta could save up to Rp 550 billion ($34.7 million) annually in healthcare costs by 2030. This initiative addresses a major public health concern, as air pollution-related diseases, including ischemic heart disease and pneumonia, accounted for Rp 1.2 trillion in treatment costs in 2023.

What Is Euro 4 Fuel?

Euro 4 fuel standards require sulfur levels in fuels to be no more than 50 parts per million (ppm), significantly lower than Indonesia's current fuel options, which range from 150 to 2,000 ppm. Fuels such as Pertamax Turbo and Pertamax Green already meet these standards, while diesel fuels like Biosolar and Dexlite remain far behind. By reducing sulfur content, Euro 4 fuels minimize harmful emissions, promoting cleaner air and better public health.

Projected Health Benefits

The adoption of Euro 4 fuel could reduce air pollution in Jakarta by over 90%, leading to significant decreases in respiratory and cardiovascular illnesses. For instance, pneumonia cases are expected to drop by 86%, ischemic heart disease by 69%, and chronic obstructive pulmonary disease (COPD) by 84%. These improvements highlight the strong connection between fuel quality and public health outcomes.

Economic and Environmental Impact

While transitioning to Euro 4 fuels entails initial costs, including refinery upgrades by PT Pertamina, the long-term benefits outweigh these expenses. The IESR estimates a manageable subsidy increase of Rp 5.5 trillion in the first year, compared to the much larger annual fuel subsidy allocations. Additionally, reducing air pollution aligns with global climate goals, particularly under the Paris Agreement.

Policy Recommendations

To facilitate this transition, the IESR urges the government to enforce Ministerial Regulation No. 20/2017, which mandates Euro 4 compliance. Additional recommendations include increasing imports of Euro 4-compliant fuels, expanding domestic production, and implementing a roadmap for stricter vehicle emission standards. Public awareness campaigns will also play a crucial role in garnering support for cleaner energy solutions.

As Jakarta advances towards Euro 4 compliance, this initiative stands as a testament to the critical balance between environmental stewardship and public health improvements. With proper implementation, Euro 4 fuel standards can drive sustainable progress in Indonesia's urban centers.