Pertamina New & Renewable Energy (“Pertamina NRE”), a subholding of PT Pertamina (Persero) which focuses on developing clean energy, and PT VKTR Teknologi Mobilitas Tbk (“VKTR”), a subsidiary of the Bakrie Group, have agreed on sustainable initiatives in the electric vehicle ecosystem in Indonesia.

Pertamina NRE and VKTR announced their strategic partnership in accelerating the adoption of electric vehicles in Indonesia through e-Mobility as a Service (e-MaaS) to support the decarbonization of Indonesia’s transportation sector through the signing of a Joint Development Agreement on March 15 2024, and a signing ceremony on March 26 2024 held at Grha Pertamina, Jakarta.

The signing was carried out by Gilarsi W. Setijono, CEO of VKTR and CEO of Pertamina NRE, John Anis, and witnessed by the President Director of PT Pertamina (Persero) Nicke Widyawati, CEO of the Bakrie Group, Anindya Bakrie, Deputy President Director of the Bakrie Group, A. Ardiansyah Bakrie and Chairman Archipelago Capital Authority, Bambang Susantono.

Indonesia has set its goal of achieving Net Zero Emissions by 2060, with the transportation sector identified as the second largest emitter of greenhouse gases (GHG). In this context, the collaboration between VKTR and Pertamina NRE seeks to support the achievement of this ambitious target as an effort to reduce emissions from the transportation sector which is identified as contributing 23% of total emissions.

Public transportation infrastructure investment currently still relies on government funds. However, e-MaaS offers flexible financing options for the operation and maintenance of electric buses, thereby reducing the burden on government budgets. Apart from that, the e-MaaS vision will not only be about vehicles, but will also develop infrastructure such as charging stations and renewable energy sources, and other crucial things to maintain a sustainable transportation ecosystem.

VKTR and Pertamina NRE will later form a joint venture (JV) which will provide electric vehicles for the needs of Transjakarta or other companies in need. By providing adequate capital expenditure (CAPEX), Transjakarta or companies that need it will only pay rent or pay rupiah per kilometer used to this JV.

This will certainly make things easier for customers, especially Transjakarta, which will need a large fleet in the future. This partnership will initially focus on buses as mass transportation, but could eventually expand to commercial vehicle segments such as trucks and other vehicles.

Designed for ease of implementation, e-MaaS opens up opportunities for VKTR to support entities such as TransJakarta and Capital Archipelago in developing the infrastructure necessary for widespread adoption of electric vehicles.

Currently, Indonesia operates more than 260,000 registered buses representing a total market of around US$ 50 billion. The target of this JV is to reach sales of 10,000 units of electric vehicles by 2030. Thus, the transition from the CAPEX model to the operational expenditure (OPEX) model will accelerate the widespread adoption of electric vehicles in Indonesia.

John Anis, CEO of Pertamina NRE, welcomed this collaboration, “We are very proud and optimistic about this collaboration, it is time for various parties, both government, private and society, to build a strong electric vehicle ecosystem. Not only talking about improving the economy, protecting the environment and sustainability “This is also something that Pertamina continues to develop through various innovations and other strategic collaborations,” explained John.

Gilarsi W. Setijono, CEO of VKTR, expressed enthusiasm for this partnership, stating, “This collaboration marks a historic moment in our journey towards sustainable transportation solutions. EV adoption in Indonesia is still in its early stages, VKTR is committed to providing financing solutions that make it easier to facilitate infrastructure Comprehensive EV, shifting the CAPEX model to an OPEX model, and significantly contributing to the Indonesian economy through e-MaaS. Together with PNRE, we are ready to revolutionize the EV landscape in Indonesia and pave the way for a greener and more environmentally conscious future.”

The signing of the Joint Development Agreement between VKTR and PNRE is a major step towards decarbonizing transportation in Indonesia. With this collaboration, it is hoped that it can support Indonesia’s big goal of achieving net zero emissions by 2060.

Pertamina, as a leading company in the energy transition sector, is committed to supporting the 2060 Net Zero Emission target by continuing to encourage programs that have a direct impact on the achievement of Sustainable Development Goals (SDGs). All of these efforts are in line with the implementation of Environmental, Social & Governance (ESG) in all Pertamina business lines and operations.