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JAKARTA - Bicycle and two-wheeled electric vehicle manufacturers with more than 30 years of experience, PT Terang Dunia Internusa (TDI) is ready to seize the market share potential of two-wheeled electric vehicles in Indonesia and globally which is in line with the carbon emission reduction target through an end-to-end strategy through the well-known United brand.

Indonesia affirms its commitment to reduce carbon emissions to maintain global temperature increases by increasing the target of enhanced nationally determined contributions (E-NDC) to 32 percent or equivalent to 912 million tons of carbon dioxide (CO2) by 2030. This target is higher than the previous carbon emission reduction of 29% or equivalent to 835 million tons of CO2.

The Ministry of Energy and Mineral Resources (ESDM) noted that if Indonesia only conducts business as usual and does not make changes to reduce fossil fuels, it will produce 1.5 gigaton CO2 by 2060.

Indonesia has taken a series of steps to achieve net zero emissions (NZE) by 2060 or sooner, starting from converting fuel to LNG, reducing coal-fueled power plants, to converting motorized vehicles into electricity.

Quoting from the Climate Transparency Report: Comparing the G20 Climate Action Towards Net Zero which was released in 2021, the emission from the transportation sector contributed 27 percent of the energy-related CO2 emissions in Indonesia. This is because this sector is dominated by fossil fuels in 2019.

Climate Transparency states that electrification of the transportation sector with a high share of renewable energy in the electricity sector is needed to reduce emissions. Thus, passenger transportation and goods need to be decarbonized in order to remain within the 1.5 degree Celsius temperature increase limit agreed in the Paris Agreement.

TDI as one of the largest two-wheeled bicycle and electric vehicle manufacturers in Indonesia has a common vision to support efforts to reduce carbon emissions. Through the well-known United brand, TDI has distributed more than 300 types of bicycles, 20 electric bicycle models and four kinds of electric motorcycles to 600 dealers throughout Indonesia and abroad.

TDI President Director Stephen Mulyadi explained that TDI has an end-to-end experience building the United Bike brand which has now become the top of mind in the bicycle market. TDI is now continuing to strive to develop and build environmentally friendly electric bicycles and electric motorcycles as an alternative to internal combustion engine (ICE)-based motorcycles by increasing investment in terms of research and development, marketing, and infrastructure.

"We have a vision of revolutionizing the transportation industry by providing two-wheeled vehicles, both electricity-based and an environmentally friendly, efficient, and affordable pedal in the domestic and foreign markets," he explained to the media, quoted Tuesday, August 15.

Stephen estimates that the market share of electric bicycles and electric motorcycles in Indonesia will continue to grow from year to year with demand for arrival from individuals, the government, as well as businesses, especially the transportation and logistics sectors.

In a report entitled Indonesia Motorcycles Market Summary, Competitive Analysis, and Forecast, 2017-2026, which was reported from the official research market.com website, the market share of electric motorcycle vehicle sales is estimated to increase from 0.03 million units or equivalent to 0.5 percent in 2022 to 1.87 million units or reach 28 percent in 2027.

Meanwhile, this growth is in line with the estimated trend in the value of the electric motorcycle market which is estimated at US$8.78 billion or has a CAGR of 7 percent in the 2023 - 2027 range.

On the other hand, Stephen believes that the large demand for electric vehicles has been supported by government support. Since the issuance of the Presidential Regulation in 2019, various supporting policies and regulations issued by the government have been issued to encourage the development of the electric vehicle ecosystem.

"In line with Indonesia's efforts towards a sustainable future, the government has taken significant steps to support the growth of the electric vehicle industry. This support is not only beneficial for the environment but also the Indonesian economy as a whole," he explained.

Furthermore, TDI Director Henry Mulyadi revealed that TDI is expanding its electric motorcycle business portfolio called the United E-motor. One of the strategies undertaken is building additional production facilities.

Currently, TDI has two production facilities located in Citeureup and Gunung Putri, Bogor, West Java. From there, the company is able to produce 1 million bicycles per year, 250,000 E-Moped per year, and 150,000 E-Motors per year.

"The company has a strategic position to capture Indonesia's market demand which continues to increase for environmentally friendly transportation options by attracting consumers who are aware of prices without sacrificing performance and reliability," he explained.

TDI has 20 electric bicycle models and four electric motorcycle types, namely MX-1200, T-1800, TX-1800, and TX-3000. Henry said the four United E-Motor types have a high distance to battery guarantees that reach 3 years which makes United E-Motor superior when compared to similar products circulating in the market. As a result, United E-Motor has a better value proposition in the market.

Furthermore, Henry explained that most of the components used by the United E-Motor come from within the country so that the United E-Motor has an average TKDN value of more than 50 percent where United E-Motor products can follow Government Assistance and Fiscal Incentives for Battery-Based Electric Motor Vehicles (KBLBB) with a subsidy assistance value of IDR 7 million per unit of the new motor.

This of course makes United E-Motor products more affordable by the public by not neglecting the performance advantage of the United E-Motor.


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