According to an information disclosure released on Friday, the JV will be called PT Foxconn Indika Motor (FIM), which is licensed to build EVs with four wheels or more, produce batteries and provide management consulting services.

“MMG’s participation in FIM is the company’s step toward expanding its business activities into the electric vehicle sector, especially four-wheeled electric vehicles, in Indonesia,” Indika Energy corporate secretary Adi Pramono said in the disclosure.

Focusing on manufacturing commercial electric cars and batteries, the JV was followed by an investment of Rp 39 billion (US$2.5 million) from MMG, equivalent to 60 percent of the paid-up capital.

An affiliation of Hon Hai Technology Group, known as Foxconn, Foxteq Singapore paid in capital of Rp 29 billion, the equivalent of 40 percent of the paid-up capital.

Read also: Indika Energy’s Ilectra Motor Group launches all-electric motorbike

In a press statement released on the same day, Indika Energy director and group chief investment officer Purbaja Pantja said that the company saw huge potential in EV development in Indonesia.

“This collaboration will create a comprehensive electric vehicle ecosystem that aims to support Indonesia in becoming one of the leading electric vehicle and battery ecosystem developers,” Purbaja said.

In the same press release, Foxconn battery strategy head Troy Wu said that this JV showed the firm's commitment to developing a sustained EV ecosystem in the country.

"Indonesia is the largest economy in Southeast Asia and holds the current G20 presidency and the next ASEAN chairmanship, and has committed to an ambitious net-zero emission target," Wu added.

In January 2022, both companies with state-owned EV battery holding Indonesia Battery Corporation (IBC) and battery swap technology firm Gogoro signed a memorandum of understanding on developing the EV ecosystem in Indonesia.

Although a coalmining company, Indika Energy has pushed through a grandiose design of introducing renewable energy and developing the EV ecosystem in Indonesia.

Previously, another Indika Energy EV manufacturing arm PT Ilectra Motor Group (IMG) launched the indigenous fully electric Alva One Motorcycle, which will be manufactured in a factory in Cikarang, West Java.

In order to develop the two-wheeler brand and its supporting ecosystem, IMG raised a total of US$ 7.5 million in May from Alpha JWC Ventures, Horizon Ventures, equal to 21.4 percent of the company's shares, while Indika Energy added another $7.5 million.