In a stock exchange announcement on Tuesday, VKTR said that the scope of work includes but is not limited to mechanical engineering and buildings. The company revealed that the value of the works, which include a united shop, inspection facilities, vehicle storage, water disposal facilities, and information technology systems, is Rp. 180.08 billion or US$ 11.6 million.

The period of completion of the work is 12 months after the construction agreement is signed. For this work, VKTR also provides a guarantee for the benefit of working capital loans from banks for the implementation of PT Bakrie Construction's work with a fee of 0.25% for VKTR.

VKTR has agreed to provide a corporate guarantee to the bank in the amount of Rp. 155 billion or US$ 10 million for working capital loans from the bank for the
execution of PT Bakrie Construction's works.

In connection with the execution of this work, VKTR and PT Bakrie Metal Industries have also entered into a share pledge agreement. PT Bakrie Metal Industries as the pledgor, agreed to pledge all of its shares in PT Bakrie Construction equivalent to 98.23% of the issued shares of PT Bakrie Construction.

VKTR, PT Bakrie Construction, and PT Bakrie Metal Industries are affiliated companies. PT Bakrie Construction is an affiliate of VKTR, both of which are controlled by the same party, either directly or indirectly by PT Bakrie & Brothers Tbk (BNBR). Meanwhile, PT Bakrie Metal Industries is the main shareholder of VKTR. In addition, there are members of the Board of Commissioners of PT Bakrie Metal Industries who also serve as members of the Board of Commissioners of VKTR.

With this affiliation agreement, management considers that VKTR can increase the production capacity of electric bus and truck assemblies at a lower cost, while maintaining quality when carried out with affiliated parties. "So that VKTR can make cost savings and sales will increase," wrote VKTR management.