ARTICLE

A JV of jek-Tokopedia (TO) and TBS Energi Utama (TOBA), Electrum, has inked an agreement with Pertamina New and Renewable Energy (Pertamina NRE), which is part of Indonesia Battery Corporation (IBC) on November 12 2022 on developing electric vehicle ecosystem, especially collaboration in certain areas including infrastructure, EV battery, technology, manufacturing process and commercialization. The company aims for developing integrated EV industry to help achieve energy transformation nationwide. (Source: Investor Daily) Comment: We think that forging partnership with EV battery company could be seen as strategic move amid TO’s initiative to develop EV ecosystem. The EV market has been gaining grounds as it targets to deploy more EV and even ing fully electric by 2030. TO has previously had partnerships with other EV manufacturers such as ro. In addition, according to a survey, EV has started to win drivers’ favour thanks to lower maintenance costs relative to fossil fuelled vehicles, in some aspects. In the long run, we are of the view that it will be important for transportation start-ups to secure collaboration with core players, especially EV batteries to push its scale of economies, and explore potential avenue for additional income. On the other hand, a push toward green mobility will also be beneficial to attract investors’ attention amid rising ESG concern. However, we note that lack of charging infrastructures, lack of vernment tax incentives and fossil fuel subsidy could disincentivize EV development in Indonesia.