Source: Humas BNBR | 16 Oct 2018

PT Bakrie & Brothers Tbk (“BNBR” or “Company”) immediately embarked on strategic steps to go deeper into the automotive business. In the next few years, through ‘scheduled industry deepening’, the Company hopes to become one of the main players in the business of supplying electric vehicles in the country, after achieving the target of fulfilling local component content (Domestic Content Level) 55 percent in the coming 2022 . Moreover, BNBR will not only sell buses, but also offer transportation systems for cities in Indonesia.

“Beginning in 2019 BNBR hopes to be able to start penetrating the market, especially for buses with gross vehicle weight (GVW) under 24 tons,” Bobby Gafur Umar, President Director of PT Bakrie & Brothers Tbk told reporters, at the Press Conference and Test Vehicle (Test Drive) electric bus unit in Bali, Monday (10/15). In Bali, two units of electric buses have been prepared by BNBR, and at the same time functioned as shuttle buses during the International Monetary Fund & World Bank meeting last week. “Many are interested and pay special attention. And technically, there is absolutely no problem with these two electric bus units, “said Dino Ryandi, CEO of PT Bakrie Autoparts added.

As was reported some time ago, BNBR through its business unit PT Bakrie Autoparts has established a business partnership with a leading electric bus manufacturer from China, BYD Auto Co.Ltd, to seriously develop its new line of business in the automotive field. The cooperation was officially agreed through the signing of the MoU on April 13, 2018 in China. “We are already on track, setting targets to develop the electric bus business,” Bobby said, adding that all the needed component needs, except batteries, can already be met from within the country. “The body, chassis and several other important components can all be produced in Indonesia,” he said.

PT Bakrie Autoparts itself will be the main force behind BNBR’s new business. This automotive component manufacturing company has experience in supplying quality products to a number of major automotive manufacturers in the country. “I also need to emphasize here that the direction of our cooperation with BYD is industrialization. That is clear. We will provide several locations such as in Bekasi, Balaraja and Lampung. For assembly, it might be in Balaraja, because the land there is quite large, around 7.7 hectares. The factory building is already there, the land is ready. And close to the toll road, “Bobby explained. The plant is expected to be able to produce 1000 to 2000 units of electric buses every year.

Bobby also explained, while waiting for a more definite regulation on electric vehicles from the government, BNBR has also begun to explore the possibility of cooperating with a number of local governments and big cities in Indonesia. “We invite them to work together to use the electric bus that we produce. We are optimistic, because we not only sell buses, but also offer transportation systems for cities in Indonesia, “he said. Not long ago, Bobby claimed to have met with the Governor of Central Java, the Mayor of Yogyakarta and several other regional heads, for this purpose.

Waiting for The Right Time

To reporters Bobby also explained that the presence of an electric car is a necessity and only a matter of time. PT Bakrie & Brothers Tbk, according to Bobby, appreciated BYD Auto Co.Ltd, which had stated its commitment to establish an electric bus procurement and production cooperation. “I am optimistic that the electric bus from the Bakrie-BYD collaboration can make a major contribution to the transportation system in Indonesia. Maybe it will not be seen and felt in a short time, but in the future it can exist, especially in cities, “he said.

Bobby explained, the government of several cities in Indonesia at this time had begun to think more seriously to convert the use of diesel-fueled buses to become more fuel-efficient and cleaner. He said the Central Java Provincial Government had conducted a more in-depth study of this matter. “We have talked with the Governor of Central Java. Pak Ganjar Pranowo is very concerned about this, “he said. As is known, the Semarang City Government has recently started to replace diesel fuel for gas to fuel the buses there.

Bobby also claimed to have heard that PT Transportation Jakarta (Transjakarta) recently was even seriously conducting a comprehensive study to obtain exact data on operational costs and the level of safety and comfort of electric buses. “This company is reviewing the operational costs of electric buses to measure efficiency compared to oil-fired buses. Their operational costs will definitely be much cheaper, “said Bobby.

The automotive observer also paid special attention to the presence of this electric bus. The President of the Indonesian Automotive Institute (IOI), I Made Dana Tangkas, expressed his appreciation and supported the Bakrie-BYD electric bus development activities. “This support has been included in the Electric Vehicle Perpres Plan,” he said in Bali.

Explained by I Made Dana Tangkas, it was indeed time for Indonesia to master the technology of electric vehicles. There are several stages to master this electric vehicle technology, namely from HV, PHEV and BEV with the development of common technologies such as batteries, motors and PCU (inverters). Besides being able to develop HV in the initial stages, BEV can also be developed for public vehicles such as buses and other special functional vehicles, including two- and three-wheeled vehicles. “Ideally, we make electric vehicles that are applicable, easily accessible and operating in certain areas,” said Made Dana Tangkas.

BYD’s reputation

On that occasion, PT Bakrie Autoparts CEO Dino Ryandi also explained the background of choosing BYD as a strategic partner in developing this new BNBR business line. “If people in all corners of the world talk about electric vehicles, the name BYD will certainly stick. All know who and how BYD’s reputation as a manufacturer of electric vehicles, “said Dino.

BYD is indeed known as one of the leading electric bus manufacturers in China. The brand, based in Shenzhen City, has exported many electric buses to various countries, including to mainland Europe. The name BYD which stands for ‘Build Your Dreams’ is listed as one of the largest companies in its field. At present, BYD employs almost 180,000 employees and has 22 industrial estates in the world with an area covering 17,000,000 square meters.

BYD also expanded beyond China. BYD is seriously working on the bus market in Europe by opening a bus plant in Hungary, which has been operating since April 2017. Another BYD bus plant in Europe is located in Bauvails, France, which together with factories in Hungary are able to increase its bus production capacity to double. BYD also set foot in the UK by supplying driveline to its partner companies.

The latest news, BYD was present at the 67th prestigious IAA Commercial Vehicles exhibition which was held in September 2018 in Hannover, Germany. This is the second year that BYD has performed at the IAA, while emphasizing the company’s leadership position in the European electric vehicle market. Last September, IndyGo, the largest public transportation service provider company in the state of Indiana, United States, and BYD also announced the delivery of the first K11 60-foot electric bus to serve Indianapolis. This fact also further strengthens BYD’s position in the electric vehicle market in the United States.

Since marketing its first electric bus in Europe in 2010, BYD has managed to sell at least 600 units, solidifying its position in the market share of 20%. “Electric bus products made by BYD have been used in 32 countries around the world. We are proud to be a BYD partner, “said Dino.

BYD also opened a battery recycling plant in Shanghai in the second quarter of 2018. The goal is to reduce raw material costs and help deal with battery waste. According to Dino, BYD is also very well known as one of the battery manufacturers, one of the most important components of electric vehicles.

For Further Information, contact:
Dino Ryandi
CEO PT Bakrie Autoparts HP: 0811.890.785
Bayu Nimpuno
Head of Corporate Communications HP: 0815.1180.2250