VKTR Builds Commercial Electric Vehicle Facilities, Minister Of Transportation: Government Must Support

Minister of Transportation Budi Karya Sumadi appreciated PT VKTR Tbk Mobility Technology (VKTR) for building the first commercial electric vehicle facility in Indonesia.

According to him, this facility will accelerate the adoption of electric vehicles (EV) in Indonesia.

This was conveyed by Budi while attending the groundbreaking of the facilities built by a subsidiary of Bakrie & Brothers in Magelang, Central Java.

Budi said that in establishing an electric vehicle ecosystem in Indonesia, synergy and collaboration are needed and started from commercial electric vehicles such as buses, trucks, and taxis.

"What we are doing is a task that is not just a private work, but the government is obliged to support it," he said in an official statement, Tuesday, February 27.

Budi also conveyed the Indonesian government's commitment to increase the target of reducing unconditional emissions from 29 percent to 31.89 percent and conditionally from 41 percent to 43.20 percent.

This target has also been stated in the Enhanced Nationally Determined Contribution (ENDC) document.

To achieve the emission reduction target, continued Budi, the Ministry of Transportation has committed to encouraging the development of the Battery-Based Electric Motor Vehicle (KBLBB) industry for domestic and even global market needs.

"Currently, the number of KBLBB is based on a Type Test Registration Certificate issued as of January 22, 2024, which is 122,630 units," he said.

Through the cooperation between the government and business entities (KPBU), said Budi, currently the largest testing and certification center in Southeast Asia has also been carried out in the form of Proving Ground, which is located at the Road & Motor Vehicle Certification Testing Center (BPLJSKB) Bekasi, West Java.

With the construction of the Bekasi BPLJSKB Proving Ground, he continued, the implementation of type tests that have been carried out abroad can later be carried out in Indonesia.

"The government hopes that by stimulating electric vehicles, it will increase energy efficiency and energy conservation in the transportation sector, as well as the realization of clean and environmentally friendly air quality and most importantly reduce dependence on fuel imports," he said.

Meanwhile, the Minister of Investment/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, said that the construction of this factory, which has a very extraordinary domestic content level, is around 40 to 70 percent.

"This is not a small number, showing that local industries are able to compete globally and provide hope for the future of Indonesia's more sustainable and independent automotive industry," he said.