Electric Motor Manufacturer Alva One Gets 156 Billion Rupiah Injection from Standard Chartered

Electronic motorbike manufacturer Electra Mobilitas Indonesia (EMI), part of PT Indika Energy Tbk, announced funding support from Standard Chartered Indonesia, to continue to improve its ALVA electric motorbike production services. It stated that the fund facility received was $10 million (more than 156 billion Rupiah).

The sustainable trade funding agreement from Stanchart was signed by EMI which is part of the ALVA producer. IMG is a company whose majority shares are owned by Indika Energy. Through this agreement, Standchart will help IMG build sustainable practices within their supply chain system.

“We are proud to provide a sustainable trade funding facility to support IMG's aspirations to develop its green operations. This agreement is also in line with Standard Chartered's global efforts to create more sustainable and inclusive global trade flows," said Cluster Standard Chartered CEO, Indonesian and ASEAN Markets (Australia, Brunei and the Philippines) Andrew Chia as quoted from SWA.

Indika Energy Director and Group Investment Officer Purbaja Pantja, who is also the Main Director of IMG, explained that the development of the ALVA electric motor is part of Indika Energy's efforts to diversify its non-coal business such as electric vehicles, gold mining, nature-based solutions, new and renewable energy, and digital technology. In fact, the company has announced a target to increase non-coal revenue by 50% by 2025.

In line with the goals set by IMG and Indika Energy to reduce their carbon emissions, Standchart has provided an Import Invoice Financing facility which will limit the use of financing to only those suppliers who provide raw materials and spare parts related to the production of ALVA electric motors.

The partnership with Standchart and the Indika Energy business group is categorized as sustainable funding under Standard Chartered's sustainability framework, as more than 90% of EMI's revenue comes from environmentally friendly activities. In addition to providing import invoice funding facilities, Standchart will also support EMI's treasury operations by utilizing Straight2Bank Bank solutions.

“We are excited about Standard Chartered's support for IMG to drive a greener mobility and lifestyle ecosystem through ALVA electric motorbikes. Hopefully this will be a good start for our efforts and the entire supply chain to present the best electric vehicle solutions for a more sustainable future for Indonesia," said Purbaja as quoted from Bisnis.com.

He said that IMG had produced ALVA electric motorbikes through a factory in Cikarang, West Java. The factory measures 17.600 square meters with a production capacity of 100 thousand motorcycles per year. For the first handover of the motorbike unit, it was officially carried out on November 30, 2022.

Purbaja stressed that the presence of ALVA as a domestic product is equipped with high-tech features that provide a separate experience for national automotive consumers. "We want to invite the public to feel that the existence of ALVA is not just a motorbike but ALVA is a lifestyle," he said.

ALVA or Alva One is a zero-emission motorbike that offers an adventurous style automatic scooter design. This motorbike has the ability to move up to a maximum speed of 90 km per hour. While one fully charged battery can cover a distance of up to 70 km. One battery can be fully charged with a charging duration of four hours.

Gesits acquired

Separately, another local electric motorbike player, PT Wika Industri Manufaktur (WIMA), a manufacturer from Gesits, has acquired a portion of its shares by Indonesia Battery Corporation (IBC). The shares purchased are owned by PT Wijaya Karya Industri dan Ekspor (WIKON).

IBC now owns 53,93% of WIMA's shares, followed by 46,04% of WIKON's shares, and PT Wijaya Karya Employee Cooperative (Kokar WIKA) owns 0,03%.

WIKON Main Director Dwi Johardian said that the collaboration between WIKON and IBC was a strategic step for Gesits going forward. Later it is hoped that Gesits' TKDN can increase to 60% from the current 47%, thanks to the support from IBC's integrated domestic electric vehicle battery assembly capability.

According to him, one of the strengths offered by IBC lies in the integrated battery industry ecosystem, where batteries are the main component as an energy source for electric vehicles and contribute significantly to the cost component of electric vehicles on the market.

"Thus, the WIKON and IBC collaboration is the right step for the development of Gesits as the nation's first two-wheeled electric motorized vehicle," he said as quoted from Bisnis.com.

Founded in 2018, WIMA is a joint venture between WIKON and PT. GESITS Technologies Indo. Gesits has sold more than 4.500 units of electric motorcycles since its launch in 2019. In February, Electrum, a joint venture between Gojek and TBS Energi Utama—announced partnership with Pertamina, Gogoro, and Gesits to accelerate the development of an integrated electric vehicle ecosystem in Indonesia.