A top official claimed Indonesia-listed Indika Energy and other investors want to provide Ilectra Motor Group (IMG), maker of Alva One electric two-wheelers, $16 million to assist development.
Indika Energy’s director of group chief investment, Purbaja Pantja, claimed IMG spent $1.9 million building Alva One from January to March 2023. The annual budget is $17.8 million.
“From the capital expenditure budget, we can see how much investment we can allocate,” Pantja told reporters on Thursday.
Indika Energy and Horizons and Alpha JWC Ventures formed IMG.
Indika Energy, IMG’s parent company, will fund growth. Pantja said Indika welcomes more investment.
Alpha JWC Ventures and Horizons Ventures have funded IMG since May 2022. Alpha JWC, Horizons Ventures, and Indika Energy each invested $7.5 million. Pantja claimed Standard Chartered gave IMG $10 million in 2022 for operating capital.
As reported by DealStreetAsia, Alva is negotiating a $50 million fundraising round with existing and new investors. Pantja said Alva will require fresh funds to expand, but declined to provide details.
IMG opened a Java and Bali sales base in April and will sell new Alva models soon. In Cikarang’s industrial zone, the business erected 100,000-unit production facilities.
IMG has invested $20.7 million on EV two-wheelers since May 2022.
Indika’s three EV ecosystem firms include Alva. PT Foxconn Indika Motor, an electric bus manufacturer joint venture with Foxconn, and PT Energi Makmur Buana, a distributor and EV recharging station facilitator, are its other EV companies.
Indika creates solar panels to assist its sustainable development goal in addition to EVs. Indika plans to balance coal and non-coal revenue by 2025. Indika sold PT Mitrabahtera Segara Sejati and Petrosea, its coal companies.
Indonesia, which possesses the world’s greatest nickel deposits, wants to become a worldwide EV production powerhouse despite its young EV industry. Since 2019, the government has offered EV investment incentives across the archipelago.
According to DealStreetAsia and Rigel Capital’s “State of the Electric Vehicle Industry 2022” study, global corporations invested $17 billion in China’s battery production industry in 2022.
Given its long-term potential, some Indonesian companies are spending large. TBS Energi Utama, Djarum Group, PT Wijaya Karya, and Bakrie Group-backed VKTR are additional EV firms.
Many sector businesses have grown and garnered venture money. DealStreetAsia reported that Ondine Capital led Swap Energy’s $7.2 million pre-Series A financing in April. E-mobility company Charged Indonesia raised $4.5 million in September.
VKTR, a commercial EV provider, is generating 1.13 trillion rupiah ($75.56 million) through an IPO to list on the Indonesia Stock Exchange.
