Accelerating Sustainable Mobility Adoption: Pertamina NRE and VKTR Agree to Develop e-Mobility as a Service (e-MaaS) in Indonesia

Jakarta, March 27, 2024 - Pertamina New & Renewable Energy ("Pertamina NRE"), a sub-holding of PT Pertamina (Persero) focusing on clean energy development, and PT VKTR Mobility Technology Tbk ("VKTR"), a subsidiary of the Bakrie Group, have agreed on a sustainable initiative within the electric vehicle ecosystem in Indonesia.

Pertamina NRE and VKTR announced their strategic partnership to accelerate the adoption of electric vehicles in Indonesia through e-Mobility as a Service (e-MaaS) to support Indonesia's transportation sector decarbonization. This initiative was formalized through a Joint Development Agreement signing on March 15, 2024, and the signing ceremony took place on March 26, 2024, at Grha Pertamina, Jakarta.

The signing was done by Gilarsi W. Setijono, CEO of VKTR, and John Anis, CEO of Pertamina NRE. It is witnessed by Nicke Widyawati, President Director of PT Pertamina (Persero), Anindya Bakrie, CEO of the Bakrie Group, A. Ardiansyah Bakrie, Vice President Director of the Bakrie Group, and Bambang Susantono, Chairman of the Capital City Authority of Nusantara.

Indonesia has set its sights on achieving Net Zero Emissions by 2060, with the transportation sector identified as the second-largest greenhouse gas (GHG) emitter. In this context, the collaboration between VKTR and Pertamina NRE aims to support the ambitious target to reduce emissions from the transportation sector, which contributes 23% of the total emissions.

Current public transportation infrastructure investments heavily rely on government funding. However, e-MaaS offers flexible financing options for the operation and maintenance of electric buses, thus reducing the burden on government budgets. Furthermore, the e-MaaS vision extends beyond vehicles to include infrastructure development, such as charging stations and renewable energy sources, among other crucial aspects to sustain a green transportation ecosystem.

VKTR and Pertamina NRE will establish a joint venture (JV) to provide electric vehicles for TransJakarta or other companies. By providing adequate capital expenditure (CAPEX), TransJakarta or other companies will only need to pay rent or pay per kilometer to this JV.

This partnership will benefit customers, especially TransJakarta, which will require a large fleet in the future. Initially, this partnership will focus on buses as mass transportation, but eventually, it could expand to commercial vehicle segments such as trucks and others.

Designed for easy implementation, e-MaaS opens opportunities for VKTR to support entities like TransJakarta and the Nusantara Capital City in developing the necessary infrastructure for the widespread adoption of electric vehicles.

Currently, Indonesia operates more than 260,000 registered buses, representing a total market of around USD 50 billion. The JV's target is to achieve 10,000 electric vehicle sales by 2030. Thus, transitioning from a CAPEX model to an operational expenditure (OPEX) model will accelerate electric vehicles adoption in Indonesia.

John Anis, CEO of Pertamina NRE, welcomed this collaboration, stating, "We are proud and optimistic about this collaboration. It is time for all stakeholders, including the government, private sector, and society, to build a strong electric vehicle ecosystem. Not only focusing on economic growth but also environmental preservation and sustainability are priorities that Pertamina continues to develop through various innovations and strategic partnerships."

Gilarsi W. Setijono, CEO of VKTR, expressed enthusiasm for this partnership, stating, "This collaboration marks a historic moment in our journey towards sustainable transportation solutions. EV adoption in Indonesia is still in its early stages. VKTR is committed to providing financing solutions to facilitate comprehensive EV infrastructure, shifting from a CAPEX model to an OPEX model, and significantly contributing to Indonesia's economy through e-MaaS. Together with PNRE, we are ready to revolutionize the EV landscape in Indonesia and pave the way for a greener and more environmentally conscious future."

The Joint Development Agreement signing between VKTR and PNRE is a significant step towards decarbonizing transportation in Indonesia. With this collaboration, it is hoped to support Indonesia's ambitious goal of achieving net Zero Emission by 2060.

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, and Governance (ESG) implementation across all Pertamina's business lines and operations.**