PT VKTR Teknologi Mobilitas Tbk (“VKTR” or the “Company”) continues to expand its business. After previously developing assembly plant facilities for electric bus and truck units in Magelang, the Company has now signed a joint cooperation with Synland, a tier 0.5 original equipment manufacturer (OEM) company, supplier of electric platform solution companies and part of the largest battery company in the world, Contemporary Amperex Technology Co., Limited (CATL). The signing of this joint cooperation was carried out by VKTR President Director Gilarsi W. Setijono and Synland Chief Executive Officer (CEO) Tom Jiang, in Jakarta, Tuesday (25/7/2023).

“This collaboration is one of our efforts to accelerate the electrification of transportation in Indonesia as well as proof of our seriousness in supporting the government’s program to achieve the Net Zero Emission target by 2060,” said Gilarsi.

He said, Synland and VKTR agreed to jointly expand their capabilities in serving the market for converting (repowering) conventional vehicles that use internal combustion engines (ICE) into electric-powered vehicles (EV). “The system that is built is from determining parts, components, power train, controller, wire harness, traction motor and battery. “These components are specifically designed for the Indonesian market, especially for the conversion of all ICE vehicles to EVs,” explained Gilarsi.

In the initial stage, VKTR and Synland focused on converting commercial vehicles such as buses and trucks. Based on data, the number of commercial vehicles currently on the roads is around 1.5 million trucks and 200 thousand buses. “Through the B-to-B scheme, repowering ICE vehicles to EVs is much more economical, the price can be up to 50%-60% of the price of a new EV in the same class,” said Gilarsi.

Gilarsi added that the Indonesian government has encouraged the conversion from ICE to EV through the Regulation of the Minister of Transportation of the Republic of Indonesia Number PM 15 of 2022 concerning the Conversion of Motorized Vehicles Other than Motorcycles with Combustion Motor Drives into Battery-Based Electric Motorized Vehicles. This provides the basis for the industry to convert its fleet to EVs at a more affordable cost. “This retrofit technology allows us to produce more environmentally friendly vehicles at a much cheaper cost,” said Gilarsi.

Synland CEO Tom Jiang also welcomed the agreement on this collaboration. “As a company committed to being a leading supplier of new energy and automation system solutions, we are confident that we will be able to make a significant contribution to the creation of new electrical energy for the world,” said Tom.