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Taipei-based e-scooter firm Gogoro to invest in Indonesia, ministry says

wants to become an EV hub for Asia and beyond.

Courtesy : Gogoro website

Taipei-based electric scooter company Gogoro has shown interest to invest in Indonesia to develop its electric scooters and components, according to Mr. Harjanto, Indonesia’s directorate general at the industry ministry.

“Gogoro is interested in entering Indonesia’s market. It has a concept for a battery swap, and it has foreseen the development of motorcycles and its components in Indonesia. At the moment, we’re still in discussion,” Harjanto said to reporters on Monday.

Founded in 2011 by Horace Luke and Matt Taylor, Gogoro has secured USD 300 million in its Series C funding, backed by Temasek Holdings, Sumitomo Corporation, Al Gore’s Generation Investment Management, and French’s energy player, ENGIE. The company is not only an e-scooter maker but has also developed infrastructure for battery swapping.

The firm did not respond to KrASIA request for comments about the potential investment.

Last year, Indonesia issued a regulation to support the electric vehicle (EV) industry in the country, aiming to become an EV hub for Asia and beyond starting from 2022.

Some international automakers such as Hyundai Motor and Toyota Motor have affirmed plans to build new factories in Indonesia. Hyundai announced in November an investment of USD 1.55 billion, while Toyota is also advancing USD 2 billion to develop EVs in Indonesia over the next four years, Reuters reported.

Meanwhile, in the two-wheeler segment, besides Gogoro, local players like Gesit, Viar, and Mego, have shown interest to expand their presence.

“Indonesia will start to support the two-wheeler segment market by this year, and later on will bring more electric cars into the market. We see that companies are ready to produce motorbikes and scale it to the market,” Harjanto said, adding that the demand for electric motorbikes is significant due to the affordable price.

However, the government is still struggling to manage some issues, mainly on battery infrastructure and management. “We are looking at the right formula, wheater to sell the battery included or not in the vehicle, and how to control the battery swap in case the battery won’t be included,” he said.

Indonesia has urged to develop the EV industry to reduce oil and gas consumption. According to national statistics, total vehicles registered in Indonesia by 2017 reached 138,5 million vehicles, with motorbikes accounting for almost 82% of the total.