Indonesia: Ride-hailing giant Gojek to shift to electric vehicles by 2030

A Gojek taxi rider charges his motorbike's battery at a charging station in Jakarta, Indonesia August 28, 2020. - Courtesy of Gojek/Handout via Reuters

SINGAPORE, April 30 (Reuters): Indonesian ride-hailing startup Gojek plans to make every car and motorcycle on its platform an electric vehicle (EV) by 2030 through partnerships with manufacturers and favourable leasing arrangements, co-Chief Executive Kevin Aluwi told Reuters.

Gojek announced the plan on Friday under a zero-emission pledge laid out in its first annual sustainability report, which analysts widely regard as a move aimed at bringing the company closer to a public listing.

However, analysts expect the cost of going electric in Indonesia to be high due to the need for related infrastructure in a country which only has around 100 charging stations.

"Our target is to work with various different players within the industry and government to reduce the cost of EVs to about 30% lower than internal combustion engine vehicles," prioritising Gojek's home market, Aluwi said in an interview ahead of the report's release.

The Jakarta-based firm is in talks to support development of Indonesia's EV industry, including how to build infrastructure such as battery swap and charging stations, he said.

Gojek, which also offers food delivery and payment services, says it has over 2 million drivers across Indonesia, Vietnam, Thailand and Singapore, and is backed by big-name investors including Alphabet Inc's Google and Tencent Holdings Ltd.

Aluwi, who co-founded Gojek in 2011, said the firm has EV pilot programmes in Indonesia with state energy firms Pertamina and Perusahaan Listrik Negara, scooter makers Gesits, Viar, NIU Technologies and Honda Motor Co Ltd, plus automakers Toyota Motor Corp and Mitsubishi Motors Corp.

The main concerns for drivers switching to EVs involved power and infrastructure as well as cost, Aluwi said. To help with financing, Gojek is exploring leasing arrangements, potentially through its financial services arm, he said.

"We do know that the building of this electric vehicle ecosystem from raw materials to battery production to vehicle production is something that many in the government see as a big part of the future in Indonesia," Aluwi said.

The world's fourth-most populous country has grappled with choking air pollution in cities, with traffic-clogged capital Jakarta consistently ranked among the region's most polluted.

Indonesia aims to start processing its rich supplies of nickel laterite ore for use in lithium batteries as part of a long-term goal of becoming a global EV hub.

Gojek's sustainability chief, Tanah Sullivan, said the firm has also launched programmes to reduce single-use plastic in food delivery to help achieve its zero waste and zero emission goals by 2030.

Regional rival Grab pledged in December to have 26,000 EVs in Indonesia by 2025.

"Gojek and Grab's driver base is quite big. This should help to reach economies of scale for electric motorcycle development and sales," said Septian Hario Seto, deputy head of investment and mining coordination at the coordinating ministry of maritime and investment.

The government is helping Gojek in talks with Chinese battery maker Contemporary Amperex Technology Co Ltd (CATL) to supply EV batteries, Septian said.

Reuters reported in April, citing sources, that Gojek and Indonesian e-commerce platform Tokopedia are close to finalising an $18 billion merger that would see them list both in Jakarta in 2021 and in the United States at a valuation of US$35 billion to US$40 billion dollars. -
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Indonesia , Gojek , Target , Electric Vehicles , 2030


Next In Aseanplus News

China: Setting up Wi-Fi, unboxing deliveries – Taikonauts busy 'housewarming' on their 1st day in space
China: Xi stresses drawing strength from CPC history to forge ahead
After user exodus, WhatsApp promises new privacy features
CPO futures to see profit-taking activities next week
India mourns as one of its greatest sportsman - 'Flying Sikh' Milkha Singh, dies of Covid-19 aged 91
China’s zero-tolerance approach helped control Covid-19, but is it time for an exit strategy?
China must consider environmental effect and economic fragility for belt and road projects, study says
Biden and Putin call Geneva talks ‘positive’, ‘constructive’, but differences emerged over how much they will cooperate
Restrictions are needed but full US-China tech decoupling isn’t wise, US Treasury Secretary Janet Yellen says
US optimism to reshore supply chains from Asia ‘overblown’, with region’s share of global exports set to rise

Stories You'll Enjoy