Electrum, a leading Indonesian electric vehicle (EV) joint venture between PT GoTo Gojek Tokopedia (GoTo) and PT TBS Energi Utama (TBS), has signed a heads of agreement terms sheet with state-owned Pertamina New and Renewable Energy (Pertamina NRE).
According to the terms sheet, Electrum and Pertamina NRE will collaborate to construct a EV ecosystem, particularly in battery infrastructure, including technological development, manufacturing and commercialization. It will be a demonstration of Electrum’s commitment as a pioneer of comprehensive, integrated EV systems in Indonesia.
The signing was conducted by Electrum managing director, Patrick Adhiatmadja and chief executive officer Pertamina NRE, Dannif Danusaputro.
“Electrum and Pertamina NRE are prepared to fulfill the national energy transformation goal. Indonesia’s nationwide transition to EV requires extensive collaboration between all stakeholders, including the private sector and state-owned enterprises [SOEs],” said Patrick.
Meanwhile, Pertamina NRE will be playing its part through the Indonesia Battery Corporation.
“The shift from traditional fossil fuel vehicles to EVs is bound to happen sooner or later. We are confident that synergies between sectors will accelerate the development of this ecosystem,” added Dannif.
The country has shown remarkable progress in regard to its adoption of EVs. The EV ecosystem in Indonesia is set to provide added value of US$10 billion to the national economy and create some 200,000 jobs by 2030.
“Indonesia possesses three main advantages in developing its EV industry. Firstly, Indonesia is the largest market for two-wheeled vehicles in Southeast Asia. Secondly, we already have the capability to manufacture motorized vehicles. Finally, we have the world’s largest nickel reserves for producing batteries. These factors demonstrate Indonesia’s potential as an electric motorbike manufacturer, and it has attracted the attention of global investors,” added Patrick.
However, he also acknowledged that the budding industry still needed to do its homework on the supply and demand side. The progress of the EV sector must go hand in hand with the development of battery infrastructure. Electrum’s position enables it to gather the necessary insight to support the construction of related facilities, including a battery recharging mechanism through trials involving Gojek driver partners.
Previously, Electrum had collaborated with another Pertamina subsidiary, Pertamina Patra Niaga, in the testing of EVs in Jakarta with Gogoro and Gesits.
As the largest energy company in Indonesia, Pertamina has also been actively pursuing other ventures in decarbonization. Apart from building green businesses, Pertamina NRE has also been developing non-fossil fuels for vehicles, including clean hydrogen as a solution for hard-to-abate industries that struggle with decarbonization.
Pertamina NRE has also collaborated with multiple strategic partners to develop clean hydrogen. The company is committed to supporting Indonesia’s net-zero road map and the implementation of the Sustainable Development Goals (SDGs) through environmental, social and governance (ESG) practices.
The collaboration between Electrum and various stakeholders, including Pertamina NRE, is a step forward in building an inclusive and innovative ecosystem to realize Indonesia's vision and mission to become a pioneer in the development of EVs both regionally and globally.
