Pertamina NRE and VKTR Partner to Accelerate EV Transition in Indonesia

Washington DC, November 14, 2023 – Pertamina New & Renewable Energy ("Pertamina NRE"), a sub-holding of PT Pertamina (Persero) that focuses on new and renewable energy, collaborates with PT VKTR Teknologi Mobilitas Tbk ("VKTR"), a pioneer in commercial and public electric vehicle (EV) mobility, and a subsidiary of the Bakrie Group. Both entities announced a breakthrough partnership on Monday (13/11). This alliance is dedicated to pioneering sustainable mobility solutions for public transportation in Indonesia. The partnership, formalized through a Letter of Interest to the US International Development Finance Corporation (US DFC), is a strategic endeavor towards achieving Indonesia's Net Zero emission target by 2060.

As a city with activity density like Jakarta, decarbonizing transportation is an important step toward improving urban air quality.

In line with President Joko Widodo’s directive to accelerate the electrification of public transportation, as stipulated in President Regulation No.55/2019 and President Instruction No.7/2022, this collaboration is timely and essential.

With a substantial bus population of over 260,000, Indonesia presents a significant opportunity for EV bus penetration. The partnership introduces the innovative e-MaaS (electric Mobility as a Service) model, offering flexible financing for EV bus operations and maintenance, thereby reducing reliance on government funding.

Gilarsi W. Setijono, CEO of VKTR, remarked at the LoI signing in Washington, DC, “Our combined expertise in electrification public transportation and renewable energy uniquely positions us to lead transformative solutions in Indonesia. We are committed to facilitating a comprehensive EV infrastructure, transitioning from a CAPEX to an OPEX model, and substantially contributing to Indonesia's economy.”

Dannif Danusaputro, CEO of Pertamina NRE, added, “Pertamina NRE is dedicated to achieving Net-zero emissions by 2060 or sooner. We focus on decarbonizing challenging sectors through low-carbon solutions, renewable energy development, and building future businesses comprising EVs, batteries, clean hydrogen, and carbon business. We believe that collaboration will accelerate our efforts.”

The partnership aims to assist entities like TransJakarta and the New Capital IKN in developing the necessary infrastructure for widespread EV adoption. The e-MaaS model is not limited to vehicles; it encompasses essential infrastructure such as charging stations and renewable energy sources, offering a holistic and cost-effective solution for major Indonesian cities.

This collaborative effort through e-MaaS is ready for immediate implementation in various sectors, promoting green transportation and electric transformation projects. Its scalability also opens avenues for expansion into other regions, fostering a robust and sustainable green transportation ecosystem.

Fadjar Djoko Santoso, Vice President of Corporate Communication of PT Pertamina (Persero), added that this collaboration embodies one of Pertamina's initiatives in Sustainability, which is to build an EV ecosystem in Indonesia. "We hope this partnership can drive renewable energy mix growth in the automotive industry, especially in public transportation. Thus, emissions from vehicles can be significantly reduced," he stated.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**