GoTo Transfers Electric Motor Assets Worth 23,6 Billion Rupiah to Electrum

PT GoTo Gojek Tokopedia Tbk (IDX: GOTO) through its subsidiary PT Rekan Anak Bangsa (RAB) released its electric motor, battery equipment, and trademark assets worth 23,6 billion Rupiah to PT Energi Kreasi Bersama (EKB). 

Based on information disclosure on the Indonesia Stock Exchange, RAB and EKB signed an asset sale and purchase consisting of 251 units of electric motorcycles. Gogoro 2 Plus Smart Scooter and 502 units of Smartscooter Gogoro 2 Plus electric motorcycle battery vehicle kit on July 29, 2022.

GoTo's management revealed that they had considered this step according to the development of their respective businesses. His party assessed that the management and development of trading business assets for electric motorcycles, battery equipment, and trademarks is more optimally managed by EKB.

"The company will benefit indirectly, namely the portfolio through dividends received by the company from EKB in the future. This is because GoTo through RAB owns 38.875 shares or represents 50% of the total issued and paid-up capital of EKB," said GoTo's management statement.

As is known, PT Energi Kreasi Bersama (Electrum) is a two-wheeled electric vehicle joint venture (JV) founded by PT TBS Energi Utama Tbk (IDX: TOBA) and the Group Gojek (before IPO) in November 2021. As an initial commitment, the investment value disbursed is $10 million out of a total of $1 billion in the next five years.

Lots of electric vehicle projects

Since the last few years, technology and energy companies to venture capitalists have been busy working on electric vehicle projects. This is to support the government's efforts to make Indonesia the center of electric vehicle production in Southeast Asia with a target of producing 600 thousand electric cars and 2,5 million electric motorcycles by 2030.

DailySocial.id noted that a number of these green initiatives came from the partnership model. For example, PT Indika Energy Tbk (IDX: INDY) together with Alpha JWC Ventures and Horizons Ventures established a joint venture company Ilectra Motor Group (IMG) with a total investment of $15 million.

Then, NFC Indonesia cooperates with SiCepat to establish PT Energi Always Baru (ESB) which will focus on distribution of electric motorcycles, battery exchange, and other supporting services. Even Grab has started this initiative since 2019 by gradually developing an electric vehicle ecosystem starting from the Greater Jakarta area.

Talking about the development of electric vehicles, the battery is a component that takes up 35% of the production cost. The increasing demand for electric vehicle batteries will encourage their role in industrial supply chains on a global scale. Moreover, Indonesia has a strong position as the owner of the largest nickel reserves in the world, and reserves of primary raw materials, such as cobalt, manganese, and aluminum, are still high.

According to a Deloitte report, global annual growth in electric vehicles will reach 29% in the next ten years. Total electric vehicle sales from 2,5 million in 2020 are expected to skyrocket to 11,2 million in 2025 and 31,1 million in 2030.