INDY challenges the electric motorcycle industry

PT Indika Energy Infrastructure (IEI), a subsidiary of PT Indika Energy Tbk (INDY), begins to manufacture electric motorcycles by introducing PT Solusi Mobilitas Indonesia (SMI). This subsidiary establishment has received approval from the Ministry of Law and Human Rights last week (22/3).

Adi Pramono, Corporate Secretary of PT Indika Energy Tbk (INDY) confirmed that the decision to form SMI is a part of the plan to extend its business to the electric vehicle sector in Indonesia. “The authorised capital of the said subsidiary is set to IDR 50 billion with INDY owning 99.999% and IEI of IDR 0.02% of it,” he mentioned in the information disclosure quoted Wednsday (30/3).

According to Pramono, the said subsidiary will be focused on three activities. They include manufacturing two-wheeled electric vehicles, selling motorcycles, its spare parts, and accessories, as well as providing management consultancy.

The said non-coals business line is expected to boost the company’s revenue in the future. As of now, the non-coals business sector contributed only 13.4% of total revenue of INDY.

On April 5, 2021, INDY and IEI also established PT Electra Mobilitas Indonesia (EMI), whose focus also lies on the electric vehicle industry. They expended IDR 40 billion worth of investment in it.

Source: https://www.idnfinancials.com/news/42657/indy-challenges-electric-motorcycle-industry