Indika Energy, Alpha JWC, and Horizons Ventures Invest 218 Billion Rupiah to Build an Electric Vehicle Company

PT Indika Energy Tbk (IDX: INDY) together with Alpha JWC Ventures and Horizons Ventures established a joint venture company (j) named Ilectra Motor Group (IMG). The three also invested in IMG with a total of $15 million or around 218 billion Rupiah to develop two-wheeled electric vehicles (E2W).

This collaboration was announced in Indika Energy's public expose last week, Friday (20/5). Of the total investment obtained by IMG, $7,5 million came from Alpha JWC Ventures and Horizons Ventures, and the remaining $7,5 million equity investment from Indika Energy. Meanwhile, IMG is the first portfolio of Alpha JWC Ventures and Horizons Ventures in the electric vehicle sector.

In his official statement, Indika Energy's Director and Group Chief Investment Officer Purbaja Pantja said, IMG will execute the development of a two-wheeled electric vehicle that has been running for more than a year. In addition, IMG will also develop a supporting ecosystem which is still relatively new through external partnerships.

"We also want to support the government's target to reach 3,2 million units of electric two-wheeled vehicles by 2035. From a business perspective, this business diversification can boost our non-coal revenue by 50 percent by 2025," said Purbaja.

Chandra Tjan, Co-Founder and General Partner at Alpha JWC Ventures, added that the E2W sector has a lot of potential, but players in this field are limited at this time so that its adoption is not yet widespread. "We want to bring the best two-wheelers with a holistic ecosystem and experience that can serve millions of riders. Together, we can build a greener and more sustainable world," he added.

For information, PT Indika Energi Tbk. (Indika Energy) is a diversified investment company in Indonesia with a primary focus on developing sustainable new businesses in a number of sectors, such as energy, logistics, digital, to green business.

Electric vehicle

Currently, the electric vehicle market is still a fertile field considering that Indonesia is a country with the highest penetration of two-wheeled vehicles in the world at 42% based on vehicle ownership per 100 population, and is also the third largest with 6 million motorcycles sold annually.

With this potential, the market for two-wheeled electric vehicles is projected to grow rapidly, especially since the price is also equivalent to that of non-electric two-wheeled vehicles. In addition to lower operating costs, the government is also promoting the use of renewable energy.

To target the position of a leading player in Indonesia, IMG will introduce its first two-wheeled electric vehicle at the end of 2022. IMG will present a fleet that is designed with advanced design and performance, equipped with technology and supporting ecosystem.

Meanwhile, Portfolio Curator at Horizons Ventures Frances Kang believes that IMG's holistic approach can create an enjoyable electric vehicle experience while transforming the mobility ecosystem into a greener one. "The adoption of E2W could offer a cleaner option for millions of motorists in Indonesia. As car use grows and global climate change accelerates, reducing vehicle emissions significantly becomes an urgent mission." Close it.

Digital enterprise initiation

A number of technology and investment companies have also begun to voice their concerns about the use of electric vehicles in Indonesia. Giant ride hailing GoTo and Grab including those who have tested and implemented electric vehicles in their services.

Their commitment to tackling climate change and a green environment also continues through number of initiations. For example, GoTo via Gojek and integrated energy company TBS Energi Utama established j PT Karya Baru TBS to develop two-wheeled electric vehicles, battery packaging technology, battery exchange infrastructure, to electric vehicle financing.

While, Grab cooperate with PLN to develop the electric vehicle ecosystem in stages starting from the Jabodetabek area. in Singapore, Grab hooked Hyundai to operate a fleet of electric vehicles.