Solving Indonesia's Transportation Challenges with Geotab

Indonesia, the world’s fourth-most populous country, grapples with complex transportation challenges. The archipelago is known for its traffic congestion, reflecting broader issues related to mobility, logistics, and sustainability nationwide. High fuel costs, logistics inefficiencies, and concerning road safety incident rates make it essential for Indonesia’s transportation sector to adopt innovative and smart solutions. 

The Impact of Traffic Congestion

Traffic congestion significantly affects productivity and increases transportation costs. Data from Statistics Indonesia (BPS) indicates that Indonesia’s capital Jakarta’s congestion level reached 53% in 2023, with the transport sector contributing to 50% of the city’s total emissions. During peak travel seasons, such as the Eid-al-Fitr religious holidays, vehicle movements out of Jakarta can reach 1.23 million in a single week, an increase of 51.5% compared to regular days. This congestion leads to fuel waste, delays in goods deliveries, and higher operational expenses for businesses.

To tackle this, businesses can leverage Geotab’s Fleet Tracking & Monitoring solution which offers full visibility into fleet movements, allowing operators to adjust routes dynamically and minimise delays.

Challenges in Logistics and Fleet Efficiency

With over 17,000 islands, Indonesia’s logistics sector faces infrastructure gaps, vehicle inefficiencies, and a limited pool of drivers. Data shows that 63% of Indonesia’s truck fleet is over 10 years old, while 70% exceed 20 years in operation, leading to high maintenance costs and reduced efficiency. Furthermore, the growing demand for drivers presents challenges for logistics companies in maintaining full operational capacity. 

Fuel efficiency is another major concern, with rising fuel costs adding to the financial burden of fleet operations. Between January to February 2025, Pertamina increased the price of their Pertamax fuel from IDR 12,100 to IDR 12,900 per liter. In such a situation, having visibility into fuel consumption would help businesses track inefficiencies and manage costs effectively. Geotab’s Fuel Gauge Tap-In Harness addresses this by providing accurate fuel level data, helping fleet operators monitor usage, identify waste, and implement cost-saving strategies. Additionally, MyGeotab Fleet Management Software enables fleet operators to monitor vehicle health and schedule maintenance proactively, ensuring older fleets run optimally and reducing downtime. 

Enhancing Transportation Safety with Geotab’s Technology

Road safety incidents are a serious concern in Indonesia. The National Transportation Safety Committee (KNKT) reported that 80% of road safety incidents involving public transport and freight vehicles are caused by brake failures and human errors, thereby creating an  urgency for data-driven solutions to improve transportation safety.

Geotab’s GO9 Device plays a crucial role in enhancing fleet safety by providing real-time vehicle diagnostics, helping businesses detect mechanical issues – such as brake system failures – before they lead to incidents. Combined with Driver Behaviour Analysis, which offers AI-powered insights into driving patterns, fleet operators can proactively address risky behaviours such as harsh braking, and excessive acceleration. By analysing these factors in real-time, businesses can implement driver training programs and reduce collision risks.

Supporting Indonesia’s Sustainable Transport Vision

Indonesia aims to reduce carbon emissions by 32% by 2030, making sustainability a key priority. Geotab, through the Geotab Sustainability Center, is well-positioned to support this initiative. The Geotab Sustainability Center is a data-driven platform within MyGeotab that helps fleet operators track fuel economy, monitor emissions, and identify cost-saving opportunities. Businesses can reduce unnecessary idling, optimise fuel efficiency, and ensure compliance with regulatory requirements while working towards their sustainability goals. 

Driving Change with Geotab

With the growing need for safer and more efficient transportation, Geotab’s telematics solutions provide fleet operators with the tools to enhance operational performance and sustainability. By leveraging data-driven insights and advanced mobility technology, Geotab is committed to helping Indonesia build a smarter, more efficient, and environmentally friendly transportation sector.

Discover how Geotab can help optimise your fleet operations. Contact us today to explore customized solutions for your business or request a demo.