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This paper assesses the impact of a modal shift action program aimed at reducing CO₂ emissions from surface freight transport on Java - Indonesia's center of economy and population. The action program combines fiscal measures and infrastructure development strategies which are designed through consultation with policy makers and relevant stakeholders. I test three ambition levels of the action program -basic, moderate, strong on CO₂ emissions, using a 4-step freight transport demand model and a fleet emission model. For each of the ambition levels, I estimate the shift from road to rail freight and savings in CO₂ emissions attained. I found that a significant transport demand could be shifted from road to rail where rail freight share could reach up to 20% of the total cargo transported by 2030. This shift to rail will also lead to a considerable reduction in the total annual CO₂ emissions, up to 21.6% under the …