Semarang, 11 May 2026 – The path toward national electric vehicle industry independence is becoming increasingly tangible from Central Java. PT VKTR Teknologi Mobilitas Tbk (“VKTR”) reaffirmed its role as a pioneer in the localization of Indonesia’s electric vehicle industry through its participation in the Central Java Investment Business Forum 2026 (CJIBF) 2026, held on Monday (May 11) at Hotel PO Semarang Ballroom. During the forum, VKTR presented a real-world investment development story in Central Java through a talk show session themed “Success Story in Investing and Expanding Business in Central Java,” delivered by Anindya N. Bakrie, President Commissioner of VKTR, alongside Hassan Wirajuda and representatives of the Central Java Provincial Government. The session illustrated how investment can serve as a catalyst for building Indonesia’s future industrial ecosystem.

VKTR views Central Java not merely as an investment destination, but as a strategic foundation for developing an integrated national commercial electric vehicle value chain — spanning manufacturing, supply chain, and operational ecosystems.

President Commissioner of VKTR, Anindya N. Bakrie, stated, “Central Java is not only an investment destination for VKTR, but also a strategic foundation for building the localization of Indonesia’s electric vehicle industry. With the readiness of the supply chain, particularly the coachbuilding industry, as well as strong regional government support, we see tremendous potential to develop an integrated and sustainable commercial electric vehicle ecosystem — from Indonesia, for Indonesia.”

In addition to participating in the Central Java Investment Business Forum (CJIBF), VKTR also took part in the signing of a Memorandum of Cooperation on Environmentally Sustainable Development and Energy Resilience with the Central Java Provincial Government. This collaboration also encompasses the development of a roadmap for an integrated electric vehicle ecosystem and green industry in Central Java, aimed at accelerating investment growth, strengthening domestic supply chains, enhancing local industrial capacity, and generating sustainable economic impact at both regional and national levels.

In his remarks, Governor of Central Java, Ahmad Luthfi, expressed his appreciation for VKTR’s presence, describing it as clear evidence that Central Java is increasingly recognized as a progressive and future-oriented investment destination, “Driven by the spirit of collaboration, the Central Java Provincial Government invites all stakeholders to prioritize the use of locally produced goods and services. This effort is not only intended to stimulate economic growth, but also to create broad and tangible impacts across Central Java — from expanding employment opportunities for local communities and fostering the growth of domestic industries to building a stronger and more resilient national supply chain.”

Central Java: The Starting Point of National Electric Vehicle Industry Localization

One of Central Java’s key advantages lies in the readiness of its coachbuilding supply chain, particularly in the Magelang area and its surroundings, which have long been recognized as one of Indonesia’s major coachbuilding industry hubs. VKTR partners with Karoseri Tri Sakti to integrate electric commercial vehicle production, considering that in the bus industry, the chassis and body (coachbuilding) form an inseparable product unit.

Through a Completely Knocked Down (CKD) approach, VKTR combines global electric vehicle platforms with local manufacturing capabilities. Currently, VKTR’s 12-meter and 8-meter electric bus products have obtained Domestic Component Level (TKDN) certification exceeding 40% from Indonesia’s Ministry of Industry. Meanwhile, VKTR’s electric truck products have also achieved over 30% TKDN based on self-assessment. Going forward, VKTR targets increasing TKDN levels to above 60%, and eventually reaching 80% by 2030 as a concrete step toward strengthening national industrial independence.

 

Addressing the Market Gap with a Scalable Production Base

Indonesia’s commercial vehicle market holds enormous potential, with more than 6 million trucks and 300,000 buses currently in operation, while electrification rates remain below 0.1%. This gap represents a strategic opportunity that requires an efficient and scalable domestic production base.

In response, VKTR has established an assembly facility in Magelang, Central Java, currently capable of producing up to 3,000 electric buses and trucks annually, with plans to expand capacity to 10,000 units in the future. Central Java’s location also provides significant logistical advantages, particularly for distribution across Java Island as Indonesia’s primary transportation and logistics market.

Building an Ecosystem, Not Just a Factory

VKTR’s experience in developing its business in Central Java demonstrates that successful investment is not solely determined by production facilities, but also by the ability to build a robust electric vehicle industry ecosystem through strategic collaboration with OEM principals, bodywork partners, local suppliers, and various other stakeholders. These collaborations are aimed at accelerating market penetration, driving technology transfer, enhancing domestic industrial integration, and strengthening the competitiveness of Indonesia’s national electric vehicle industry.

In line with the development of its assembly facilities in Central Java, VKTR continues to strengthen the domestic supply chain through increasing local content value (TKDN), advancing local manufacturing capabilities, and enhancing more comprehensive after-sales services. Local body assembly and the use of domestic components enable VKTR to provide end-to-end operational support, ranging from regular maintenance and data-based predictive maintenance to 24/7 technical support and faster, more efficient availability of locally sourced spare parts.

To further expand the market ecosystem, VKTR also offers a rental-based electric vehicle adoption scheme that allows customers to shift investment needs from CAPEX to OPEX. This approach provides greater financing flexibility while improving the efficiency of total cost of owning and operating (TCOO), making electric vehicle adoption more attractive from both operational and financial perspectives.

Tangible Impact on Central Java’s Economy

VKTR’s investment contributes directly to the regional economy through multiple aspects. From an employment perspective, the assembly facility in Magelang has already created hundreds of direct jobs, with significant growth potential as production capacity expands. Indirectly, the multiplier effect of this industrial activity is expected to generate thousands of additional jobs across supporting sectors such as coachbuilding, component suppliers, logistics, and after-sales services.

“This investment goes beyond building production facilities. It creates an ecosystem encompassing job creation, strengthening local supply chains, and increasing industrial added value. This is a concrete step toward green economic transformation and national industrial independence,” added Anindya.

In strengthening local supply chains, TKDN contributions exceeding 40% indicate increasing participation from domestic industries. In bus production, approximately 30–40% of vehicle value originates from coachbuilding and locally sourced components, directly driving the growth of supporting industries in Central Java.

Additionally, the CKD-based production model enables greater domestic industrial added value compared to importing fully built vehicles. This contributes to deepening Indonesia’s industrial structure and enhancing national competitiveness.

At the same time, VKTR’s presence also stimulates local economic activity, including the growth of small and medium enterprises as supporting industries, the emergence of new sectors such as EV charging infrastructure and electric vehicle services, and increased economic activity surrounding industrial zones.

VKTR’s participation in CJIBF 2026 demonstrates that collaboration between regional governments and industry players can create a strong foundation for sustainable investment growth. Central Java is now not only becoming an investment destination, but also a driving force in shaping the future of Indonesia’s electric vehicle industry.

About PT VKTR Teknologi Mobilitas Tbk

PT VKTR Teknologi Mobilitas Tbk. (VKTR – pronounced “Vektor”) is a pioneer in the electrification of the commercial vehicle segment in Indonesia. VKTR officially listed its shares on the Indonesia Stock Exchange on June 19, 2023, becoming the first commercial EV issuer in the country. VKTR is committed to accelerating sustainable mobility through manufacturing innovation and strategic partnerships with the world’s leading electric vehicle manufacturers.

For more information, please contact: 
VKTR Investor Relations (ir@vktr.id)

For media inquiries, please contact: 
VKTR Corporate Communications (media.relations@vktr.id)