PT Indika Energy Tbk, a developer of electric vehicles, is seeking partners, bank loans and technology suppliers for its Electric Vehicle (EV) project in Indonesia.
Indika Chief Investment Officer, Purbaja Pantja, explained that the company has allocated around US$12 million in capital expenditures (Capex) in 2022 for EV project.
“Indika’s capital expenditures are not included in the capital expenditures of the partners,” he stated in the Public Expose on May 20, 2022.
Retina Rosabai, Director and Group Chief Financial Officer of the company, explained that in addition to the company’s equity, Indika has issued bonds for foreign funding and has been negotiating with foreign banks for this investment for the last three or four years.
“Concerning electric vehicles, we are currently in discussions with several banks at home and abroad interested in cooperating with Indika Energy. We are always open to new opportunities,” she said.
Previously, Indika signed an agreement with Horizon Venture and Alpha JWC on May 19, 2022, to cooperate on two-wheeled EV. A US$7 million loan will be provided by Horizon Venture and Alpha JWC, which will be converted into equity at its subsidiary PT Ilectra Motor Group.
“The total amount of investment will be used to develop a two-wheeled electric vehicle and its ecosystem and build it this year. Through this development, Indika Energy hoped to provide mobility solutions in the context of electric vehicles,” Pantja stated.
Alpha JWC Ventures was established in 2015 by Chandra Tjan and Jefrey Joe as an Indonesia-focused venture capital firm. Additionally, the company has invested in Indonesian start-ups such as Kredivo, Kopi Kenangan, Modalku, Ajaib and Zenius.
Horizon Ventures is a Hong Kong venture capital firm founded in 2005 by Solina Chau and Debbie Chang. The firm is known for investing in companies that positively impact the world, including Zoom, Impossible Foods, Perfect Day, Spotify, Siri and DeepMind.
Indika has also signed a memorandum of understanding with Indonesia Battery Corporation (IBC), Foxconn and Gogoro Inc, both from Taiwan, to develop EV such as cars and buses. Through this collaborative effort, Pantja hoped the company would be able to extend the project quickly.
Pantja said that at present, the company was looking for technology that will enhance the quality of its motorcycle products. Electric vehicle technology is now global, although it is a new industry. “The development of electric vehicles is accelerating rapidly in the United States and Europe; we will consider their technology,” he added.
