Indika Energy, a key player in the Indonesian conglomerate Indika Group, has channeled strategic investments into the sustainable energy startup Shift4Good through a Singapore and France-based venture capital. The exact value of the strategic investment by Indika Energy has not been disclosed.
With this investment, Indika Energy joins a global investor group in Shift4Good, alongside companies such as Renault, ComfortDelGro, Capricorn, Motul, as well as financial institutions like European Investment Fund, BNP Paribas, BPI France, Fimalac, and Credit Mutuel Arkea.
Shift4Good’s venture capital provides funding to startups focusing on sustainable transportation and circular economy initiatives in Europe and Southeast Asia. The company offers pre-Series A, Series A, and Series B investments ranging from €1 million, €5 million, to €20 million.
Shift4Good commenced operations in November 2022 and has already invested in 10 companies across Europe and Singapore. The venture aims to invest in 30 companies within the next four years, supporting Shift4Good’s investment strategy in Indonesia. This partnership provides Indika Energy with unique access to international transactions, cutting-edge technology, and experts in the mobility sector.
The collaboration with Shift4Good opens avenues for Indika Energy to engage in collaborative projects and innovations, particularly in areas such as electric vehicle infrastructure, integrating renewable energy in transportation, and energy-efficient technologies.
“Together with Shift4Good, we can significantly and rapidly transform the electric vehicle industry to achieve zero emissions by 2050,” said Azis Armand, Vice President Director, and Group CEO of Indika Energy, on January 24, 2024.
Sebastien Guillaud, Co-Founder and Managing Partner of Shift4Good, added that Indonesia has advantages such as a battery supply chain, a domestic market with 280 million people, and supportive government policies.
“Indonesia is well-positioned to become a global force in electric vehicles in the near future. We believe Indika Energy is the ideal player to lead the electric vehicle sector in Indonesia,” expressed Sebastien.
At COP28, Indonesia made significant commitments to address climate change, targeting:
- 1.8 million electric two-wheelers and 0.4 million electric four-wheelers by 2025;
- 13 million electric two-wheelers and 2 million electric four-wheelers by 2030;
- More than 50 percent electrification of light vehicles and at least 30 percent for medium and heavy vehicles by 2030, as announced by President Joko Widodo.
To achieve these targets, the Indonesian government is providing subsidies for the purchase of electric cars and motorcycles.