Charged Electric Motor Company Reportedly Received New Funding of 49 Billion Rupiah

The developer of Charged Indonesia electric motorbikes reportedly received new funding worth $ 3,2 million or more than IDR 49 billion from global electric vehicle company Vmoto Soco Group. This investment is a form of Vmoto's trust in Charged after collaborating in developing the EVAaS (Electric Vehicle as a Service) business.

Reporting from Vantage Data, the result of this investment is that Vmoto gets an 8% stake in Charged Indonesia. Previously, Charged had pocketed early stage funding from DeClout Ventures for $4,5 million.

Since its establishment, the development of Charged electric motorbike products has been supported by an industrial complex zero energy (using sustainable energy resources) covering an area of ​​16.000 square meters in Greater Jakarta. Later the location will be used as a research and development center, experiential center, as well as a production center.

In the early stages, the company released 3 practical and affordable electric motorcycle models, namely Rimau, Anoa and Maleo. Previously, Charged electric motorbikes were available with a flexible subscription mechanism at a cost of IDR 1,65 million per month and flat for all types of electric motors. This year, Charged has added an ownership option as of January 1, 2023.

Charged electric motorbikes are offered at various prices according to the capacity and quality in their class. For example, the Rimau variant costs IDR 48 million, Anoa IDR 46 million and Maleo IDR 38 million. The company also provides a three-year battery warranty or 1.500 battery cycles whichever comes first.

Charged starts a business with a small team of only 5-6 people. Until now, the company is increasingly developing its business and has employed around 100 employees. Another player that also offers a similar product is Alva One which recently also received an injection of funds from Standard Chartered Indonesia.

Impact of using electric vehicles

The government's ambitious project to transition to electric vehicles (EV) has begun to be intensively carried out to reduce the use of fossil fuels and reduce the negative impact on the environment. The world has also begun to realize the potential of electric vehicles, both as a solution for the sustainability of the earth and as an opportunity to advance the economy.

Not long ago, the government officially issued regulations regarding the provision of subsidized assistance for the purchase of Battery-Based Electric Motorized Vehicles (KBLBB), namely electric motorbikes and electric cars, which will start on March 20, 2023.

For the proposed 2023 program, Minister of Industry Agus Gumiwang revealed that the government will provide subsidy assistance for the purchase of two-wheeled electric motorbikes in the amount of IDR 7 million per unit and 200 thousand motorcycle units have been proposed by December 2023.

The incentive is intended to accelerate the KBLBB industry in the country. Meanwhile, this acceleration is in the context of encouraging energy efficiency and security, as well as the realization of clean and environmentally friendly air quality

In his official statement, Agus also revealed some of the benefits of purchasing and using EVs in Indonesia. First, Indonesia has nickel with the largest amount of reserves in the world which allows the country to develop electric vehicle batteries with nickel as a raw material.

Second, an increase in electric vehicles can help the country fiscally because it will reduce fossil fuel subsidies. Third, this incentive will 'force' electric car/motorcycle manufacturers to accelerate investment realization in Indonesia. Then, as part of the global community, Indonesia can prove our commitment to reducing carbon emissions.

Even so, behind the positive impacts mentioned, there are still a number of things that should be considered. On the one hand, the industrialization of batteries for electric vehicles can strengthen the country's economy. But on the other hand, massive mining can have a permanent impact on the environment of the surrounding community.

In addition, the provision of this incentive can be regarded as one of the government's strategies in expediting the spread of EVs in Indonesia by making them affordable. However, what happens when the number of private vehicles on the road will increase? Some of these things can be taken into consideration for preparing further solutions in related industries.