Mapping Indonesian coal kings charging local EV industry

With over 150 million vehicles on the road and an economy long dependent on natural resources like coal, Indonesia has some of the most polluted cities in the world.

Electric vehicles (EVs), however, are on the rise, buoyed by government support and burgeoning popularity among consumers. While Indonesia’s conglomerates are naturally investing in the space, some of these investments also come from a surprising group: coal tycoons.

Tech in Asia’s observation shows there are eight local players in Indonesia’s EV ecosystem backed by coal companies or their affiliates.

They include two-wheel (2W) EV producers Alva and Electrum.

Alva is a subsidiary of Indika Energy, one of the major coal producers in Indonesia, which has increasingly invested in clean energy in recent years. Electrum, on the other hand, is a joint venture between Gojek and TBS Energi Utama, another prominent coal player that is slowly diversifying beyond fossil fuels.

TBS’ vice president director is Pandu Sjahrir, who is also the founding partner of Indonesia-based VC firm AC Ventures and a power player in Indonesian tech. Its portfolio also includes Maka Motors, a 2W EV brand founded by Gojek’s ex-transportation lead.

See also: Behind the Gojek-Gogoro breakup in Indonesia’s EV push

There are certainly plenty of more recent examples.

Charged Asia, a 2W EV manufacturer from Singapore that operates in Indonesia, secured a US$40 million investment last year from Geo Energy Resources, an SGX-listed Indonesian coal producer.

EV battery startup Swap has two investors with businesses in the coal sector: Baramulti Group and Sinar Mas Group (through its corporate VC arm Living Lab Ventures). Oyika, another battery-as-a-service provider in the industry, received funding from Banpu Next, a subsidiary of Thailand’s largest coal producer and distributor, Banpu.

Beyond the two-wheel segment, there is VKTR, an EV equipment manufacturer that is a part of the Indonesian conglomerate Bakrie Group. The group operates Bumi Resources, the country’s largest coal producer by volume.

Lastly, there’s Mobil Anak Bangsa Indonesia, an electric bus manufacturer founded by Moeldoko, Jokowi’s chief of staff. According to an Indonesia Corruption Watch report, the politician has links to coal miner and processor Moelti Artha Cakra Sentosa through his wife and children, who are major shareholders.

The coal-EV paradox

Some might view coal tycoons’ EV involvement as paradoxical. On one hand, coal is a major source of carbon emissions, while EVs are more environmentally friendly, especially battery-powered ones. 

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