VKTR Builds IDR 300 Billion Commercial Electric Vehicle Plant

This initiative demonstrates VKTR’s strong commitment to supporting the government in implementing Presidential Regulation No. 55/2019 and Presidential Regulation No. 79/2023 on the Acceleration of the Battery Electric Vehicle (BEV) Program for Road Transportation.

The groundbreaking ceremony was held at VKTS facilities, with support from national and local government officials, including Indonesia’s Minister of Transportation Budi Karya; Director General of Metal, Machinery, Transportation Equipment, and Electronics (ILMATE), Taufik Bawazier (representing the Minister of Industry); Acting Governor of Central Java Nana Sudjana; Acting Regent of Magelang Sepyo Achanto; and other local authorities.

President Director of Bakrie & Brothers, Anindya N. Bakrie, stated that VKTS facilities represent one of the key realizations of the Bakrie Group’s long-term commitment toward achieving full decarbonization by 2042, coinciding with the Group’s 100th anniversary.

“We are optimistic about the future of Indonesia’s sustainability and electrification industry, and we remain consistent in achieving both our internal targets and supporting the Indonesian government’s goal to reach Net Zero Emissions by 2060,” said Anindya in a written statement on Wednesday (Feb 28, 2024).

In the same occasion, VKTR President Director Gilarsi W. Setijono shared that the construction of VKTS facilities involves partnerships with two leading experts in the field of construction—Bakrie Construction and Automotive Engineering Corp (Sinomach Group)—both of which have an impressive track record in developing world-class EV facilities that meet international standards.

“Insya Allah (God willing), VKTS will also serve as a central hub for technology transfer and R&D related to electric vehicles, involving local academic institutions. Going forward, we hope this facility will mark a strong beginning for an independent EV industry in Indonesia,” said Gilarsi.

Gilarsi added that the VKTS facility is expected to contribute to Indonesia’s EV industry by creating at least 100 green jobs by the end of 2024.

The facility will also help the government achieve the Minimum Domestic Content (TKDN) requirement. With the CKD-based approach, VKTS will meet the government-mandated minimum TKDN level of 40%.

Additionally, the plant will act as a central hub for EV technology transfer in Indonesia and serve as an official local facility for assembling the world’s largest EV brand—Build Your Dreams (BYD).

Furthermore, VKTR is collaborating with local academic institutions to ensure their involvement in technology transfer and R&D, including PENS, UNS, and ITB.

“VKTS is committed to continuously engaging local institutions in knowledge transfer and research so that we can develop the best technology to support the Indonesian government in preparing the nation for a 100% electrified future,” Gilarsi emphasized.

Minister of Transportation Budi Karya Sumadi and the Director General of ILMATE at the Ministry of Industry, Taufik Bawazier, also extended their congratulations to the company on the groundbreaking of this electric vehicle facility. 

The CKD-based EV production facility is expected to align with the National Battery Electric Vehicle Industry Roadmap and the TKDN target for CKD-based buses and trucks.

Moreover, VKTR and Karoseri Tri Sakti are investing approximately IDR 300 billion in the construction of VKTS facilities. Of this, VKTR is contributing around IDR 200 billion for construction and technology development, while Karoseri Tri Sakti is providing land and existing buildings valued at around IDR 100 billion.

Once fully operational, the VKTS plant is targeted to have an annual production capacity of up to 3,000 combined bus and truck units.

Source: https://www.idxchannel.com/economics/vktr-bangun-pabrik-kendaraan-listrik-komersil-senilai-rp300-miliar/1

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