PT Energi Kreasi Bersama (Electrum), a joint venture company of PT TBS Energi Utama Tbk (TOBA) and PT GoTo Gojek Tokopedia Tbk (GOTO) has begun construction of an electric motorbike factory in Cikarang, West Java.
TOBA is an energy company formerly owned by Luhut Binsar Pandjaitan, Coordinating Minister for Maritime Affairs and Investment with concessions for three coal mines, four power generating units and an oil palm plantation with an area of 8,633 hectares as of 2023.
Factory groundbreaking in Cikarang
The groundbreaking for the electric motor factory is conducted at the Greenland International Industrial Center Area in Cikarang, West Java which will be completed in 2024.
However, Electrum have not yet announced the exact production capacity for the factory as well as the investment value allocated for the construction of the factory.
Previously, Patrick Adhiatmaja, Managing Director of Electrum, revealed that the company had the ambition to supply 2 million units of electric motorbikes for domestic needs.
But for the next 3 years or 2025, the company only targets sales of up to 500,000 units of electric motorbikes.
In addition, Electrum motorcycle sales will be targeted using a business to business (B2B) model. After that, the company will plan to sell directly to consumers (B2C).
Funding amount and capex
On the other hand, GOTO and TOBA have stated plans to invest around US$ 1 billion over 5 years to support the development of the electric vehicle ecosystem in Indonesia.
Meanwhile, Pandu Patria Sjahrir, Deputy President Director of TOBA said that the company has allocated around US$ 60 million (IDR 937.67 billion) or more than IDR 300 billion for capital expenditure purposes .
“Electrum [funding] isn’t entirely from TOBA, it’s also from GOTO. We have included a budget for Capex, including for the development of factory facilities. That has been agreed upon by the shareholders,” said Adhiatmadja, on January 12, 2023.
