Electric Versus Conventional Vehicles: Economic Feasibility Analysis in Indonesian Logistics

Abstract

This study examines the economic feasibility of electric versus conventional delivery vehicles in Indonesia's logistics sector, addressing the gap between environmental sustainability goals and financial viability concerns. Using Total Cost of Ownership (TCO) and Net Present Value (NPV) analysis, we analyzed operational data from PT Pos Indonesia's Karawang Branch over a five-year period. Cost components included initial investment, energy consumption, maintenance, insurance, taxes, and resale values. Results reveal conventional vehicles have lower TCO (IDR 72,452,343 versus IDR 75,008,120), but electric vehicles demonstrate superior long-term investment returns with positive NPV (IDR 53,832,465 versus negative IDR 524,074,394). Despite higher upfront costs, electric vehicles offer significant operational savings through reduced energy and maintenance expenses. These findings provide empirical evidence supporting electric vehicle adoption in Indonesian logistics, contributing to sustainable transportation policy development and corporate fleet management decisions.