Policy and Business Models for National Electric Boat Transportation System, Case Study: Thousand Islands, Indonesia

Abstract

Kelvin Narada Gunawan, Syifa Awalina Arya Putri and Sheila Hauna Arifa

Aligned with Indonesia’s ASTACITA agenda on electrification, renewable energy, and the Koperasi Desa Merah Putih solar initiative, electric boats powered by batteries and solar energy offer a low-emission and cost-efficient alternative for short-distance coastal transport. This study examines suitable policy and business models for national electric boat deployment, with the Thousand Islands (Kepulauan Seribu) proposed as a prototype site. The archipelago of over 100 small islands north of Jakarta, designated in the Jakarta Spatial Plan (RTRW) as a strategic environmental region, functions as both a marine conservation and tourism area with potential for sustainable marine resource development. Despite its strategic position, the region faces persistent challenges in inter-island connectivity and the delivery of essential goods, largely due to its dependence on fossil-fuel-based marine transport that is both costly and environmentally unsustainable. Initial survey findings reveal that although transportation routes operated by the Department of Transportation already exist, they primarily connect the islands to Jakarta and do not adequately facilitate inter-island movement. As a result, residents who need to travel between islands often face long detours and difficult transit connections, relying instead on informal small-boat services that operate without fixed schedules or safety assurance. This study assesses three dimensions: (1) infrastructure and physical suitability, (2) social acceptance and regulatory readiness, and (3) economic viability. The initial findings indicate that calm waters and short travel distances support technical feasibility, although charging infrastructure requires development. On the social aspect, communities show interest in more affordable and sustainable options, while safety and range remain concerns. On the economic aspect, the system demonstrates strong viability under a Public–Private Partnership (PPP) model, with a total investment of approximately Rp 512.8 billion. Operational costs are projected to be 40–60% lower than conventional diesel vessels, largely due to reduced fuel and maintenance expenditures. Financial modeling yields an Internal Rate of Return (IRR) of 12.37%, and an average Return on Investment (ROI) of 17.52%, with a payback period of around 9 years. Moreover, electric boats also show a higher long-term profit margin potential, especially when combined with logistics transport and eco-tourism services. Energy efficiency gains reach up to 70%, significantly reducing lifecycle emissions and operating risks related to fuel price volatility, while revenue diversification through logistics, tourism, and carbon credits enhances long-term viability. This study recommends a phased implementation strategy beginning with high-demand routes, investment in solar charging infrastructure, and the development of a supportive regulatory and financial framework.

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