Institute for Transportation and Development Policy (ITDP) Indonesia, in collaboration with Clean Mobility Collective Southeast Asia (CMC SEA), recently released a report stating that the Last-Mile Delivery (LMD) chain is the phase that contributes the most carbon emissions in Southeast Asia. This phase is also the most expensive, with emissions accounting for 53 percent of the total delivery costs. Majority of LMD services in Southeast Asia rely on motorcycles due to their affordability and ability to navigate through dense urban areas. Couriers often use motorcycles to deliver packages to houses located in narrow alleys.
Last-mile delivery is the final stage of delivering goods from distribution centers to consumers’ hands. The high reliance on motorcycles in this sector poses challenges such as air pollution, traffic congestion, and health risks. A study by ITDP and CMC SEA found that 60 percent of logistics activities in Indonesia are handled by motorcycles, and couriers cover an average distance of 60-80 km per day. In Vietnam, over 70 percent of LMD fleets use motorcycles, emitting more than 1.2 million tons of carbon dioxide daily by 2025.
Despite some logistics companies transitioning to electric vehicles and low-emission strategies, the adoption is uneven due to lack of policy support, weak regulations, and financial constraints, especially for small and local businesses. The sector often receives less attention compared to passenger transportation, yet its complexity and impact on cities are significant. Strengthening collaboration among governments, private sectors, and companies is crucial for meaningful progress.
Efforts to address environmental issues and promote sustainable urban logistics require collective action and collaboration between governments, industries, and communities. By adopting best practices from various countries, policies can be developed to create environmentally friendly, healthy, and inclusive cities for all.
