Gojek and TBS Announce "Electrum", a New Chapter in the Electric Vehicle Ecosystem in the Ride Hailing Industry

The increasing trend of electric vehicles or electric vehicle (EV) has disrupted the global transportation sector. In Indonesia itself, this technology has begun to emerge and develop. Not only from the government, but also companies from various related industries are participating in the development of this electric vehicle ecosystem.

Company ride hailing Gojek and integrated energy company TBS Energi Utama through PT Karya Baru TBS officially announced their collaboration in forming a joint venture or j (JV) named Electrum. This is the first strategic collaboration in Indonesia as well as support for the government's plan to make the development of the EV industry a national priority.

Through the joint venture, Gojek and TBS will develop business ventures in the field of two-wheeled electric vehicle manufacturing, battery packaging technology, battery exchange infrastructure, to financing for owning electric vehicles.

For Gojek, this strategic collaboration is part of the effort to realize the commitment Sustainability GoTo Group “Zero Emissions” (Zero Carbon Emissions). Gojek aiming to become a carbon-neutral platform and transition to 100% electric vehicles by 2030.

"We hope that this effort can create a better environment and contribute to tackling climate change in Indonesia. Electric vehicles are the future for the transportation sector and we ensure that this can be realized more quickly through this collaboration," said the CEO. Gojek, Kevin Aluwi.

Previous, Gojek has also announced a strategic partnership with Gogoro, a global technology company in the battery ecosystem swap, to accelerate the adoption of electric vehicles in Indonesia. Followed by a commercial trial of the use of 500 units of electric motorbikes in South Jakarta, the scale of which will continue to be increased to 5.000 units with a distance of 1 million kilometers on the platform. Gojek.

Regarding this collaboration, Pandu Sjahrir, as Deputy Main Director of TBS said, "Collaboration with Gojek this is one part of the commitment to reinvest TBS operating revenues into the clean energy sector and new and renewable energy [..] Our experience and understanding in the energy sector along with ecosystems and technology Gojek area, can be a catalyst for the development of the electric vehicle ecosystem in Indonesia."

The potential of electric vehicles in Indonesia

Before the Covid-19 pandemic rocked various industries, including automotive, electric vehicles were in the spotlight. According to a Deloitte report, the combined annual sales of battery electric vehicles and electric vehicles plug in hybrid reached the two million vehicle mark for the first time in 2019.

Even though it was hampered by the pandemic, there was a sustainable growth pattern which is expected to be maintained in 2020. Indonesia itself has declared its readiness to enter the era of electric vehicles as outlined in Presidential Regulation Number 55 of 2019 concerning the Acceleration of the Battery Electric Vehicle (BEV) Program for Road Transportation.

In the development of the electric vehicle ecosystem, batteries are an important component that accounts for 35 percent of production costs. The increasing need for electric vehicle batteries is considered to support a strategic role in the global supply chain of the electric vehicle industry. This is due to Indonesia's position as the owner of the largest nickel reserves in the world and the high reserves of other primary raw materials such as cobalt, manganese and aluminum.

According to a Deloitte report, global EV forecasts for a compound annual growth rate are to reach 29 percent over the next ten years: Total EV sales grow from 2,5 million in 2020 to 11,2 million in 2025, then reach 31,1 million in year 2030.

The Indonesian government is also working to become a center for electric vehicle production in the region with a target of producing 600.000 electric cars and 2,5 million electric motorcycles by 2030.

The Ministry of Energy and Mineral Resources (ESDM) is currently developing a project to convert used motorcycles into electric vehicles. This development project has been tested on 10 vehicles. The government has also approached industry to produce batteries and converters at low prices. This is believed to accelerate the development of the project.

In terms of public transportation, the Ministry of Transportation (Kemenhub) also targets PT Transport Jakarta (Transjakarta) to be able to fully use electric buses by 2025. This discourse has been included in the Company's Long Term Plan (RJPP) 2020-2030. The trial operation of the Transjakarta electric bus has been held since last year involving two bus brands from China.

From industry ride hailing, Gojek aren't the only ones with initiatives when it comes to developing an electric vehicle ecosystem. main competitor, Grab, also previously announced the trial electric vehicle four and two wheels in Jabodetabek.

Grab Also try electric vehicles

Major rivals Gojek, that is Grab, also continues to intensify initiatives into EV. One of them is that they partnered with Hyundai Motor Group to also launch a new electric vehicle pilot program to enable affordable and accessible ownership of electric vehicles, while also developing a roadmap to accelerate the adoption of electric vehicles in Southeast Asia. In addition, they have also started working with several electric two-wheeled vehicle manufacturers, including local manufacturers such as Gesits and Selis to multinational manufacturers such as Hyundai, Honda, Viar and Kymco.

The battery infrastructure was also co-built with state-owned companies, PLN (State Electricity Company) and Pertamina, a state-owned fuel company to bring the Public Electric Vehicle Battery Exchange Station available at Pertamina gas stations in Rawa Bokor, Jakarta. The three-way cooperation is in the form of PLN electricity support at a special rate; Pertamina's location and permit, application and operation of charging and Electric Vehicle Charging Equipment Grab for general 4-wheeled vehicle users to charge their vehicles.